That's what she wants you to think. She couldn't exactly tell people what really happened in case people took up pitchforks against hololive. Plus she didn't want the remaining Kiara collab with pink cat to get torpedoed.Actually, I'm quite sure Veibae backed out on her own after all the Holo fans called her out.
The fact she was never brought up again in any holo collab does imply she got banned.
Honestly the entire group should have been told to fuck off. Was ridiculous niji collabs got blocked but no problem with a far worse group.