Gil4, I genuinely believe that the GM is capable of resolving any controversial situation. And arguing with him should be considered bad form (you don't argue with the jury or with the referees in contests and competitions, or you might get disqualified). What do we have here? A controversial situation arose during the game. The GM didn't react to what was happening (he just joked, as far as I remember). That's a minus for him. Because he could have easily issued a mod kill, or, on the contrary, said that he didn't see any violation in Arandor's actions (or Hostor's). And that's it! There's no need to complicate things with additional rules and additional explanations to additional rules.
Nebos, of course, came up with something interesting, the setting, the newspapers are excellent. But he still lacks experience, no offense to him.
