I'd pay actual money to find out what's leading to the continuous fuckups. At what point do they use a bit of that merch cash to hire a PR person who's familiar with the english-speaking side of the internet?
My two cents on the cause of Niji EN's downfall:
First of all and the most important bit, I think all of the issues faced by Niji atm are caused by one thing: their blatant and prolonged unwillingness to view things from a western perspective, and underestimating the western market as "lesser" or "Just a side gig".
Niji's unwillingness to hire good managers and invest in their EN project caused a lot of the issues that we have seen for the past year, their hiring of inexperienced or incompetent personnel has damaged their reputation not only with the audience but also their own livers, creating an environment of fear and allowing cliques to form between the livers. Their out of control hiring of new livers also contributed to this issue, creating new waves without proper planning or allowing them to seamlessly mesh with the rest of their cast, they just wanted to flood the EN market like they did in JP, but EN isn't JP and Niji's hubris is obvious here as well.
Then comes the Selen stuff, I think Niji genuinely thinks they are in the right here, they aren't just doing this for investors, I am 90% sure they genuinely think Selen deserved what she got and they did nothing wrong. I think this way because Niji has proven their inability to take an EN perspective, their perspective is ultra corpo JP culture, and in said culture Selen clearly disobeyed management and then proceeded to tell people to re-upload that video without permission, she was going rogue on them so they obviously took control of her accounts.
This looks REALLY bad from our perspective, it obviously appears as Selen being mistreated by management and having to comply with draconian rules that we couldn't possibly understand. The thing is, Niji's rules are probably not that different from say: Hololive's, their problem is that the incompetent EN staff has made it much harder and much more complex than it needs to be, so they naturally butt heads with the livers, but in the company's eyes the livers are obviously the ones at fault.
So Selen tries to commit an hero, something which again, we see as a total vindication of our troubles but the company probably sees as out of their control, their view of it is likely similar to how Rushia contacting Korekore was for Hololive, they were just following protocol and then the vtuber does something unbelievably stupid, of course they are never gonna take responsibility for that! They just see Selen as some upstart who failed to follow the rules for months, constantly defied management and then tried to off herself and now everyone hates them.
This whole thing culminates in the termination notice, which is essentially just Niji going "Selen is the one at fault!" because in their eyes, SHE IS. In their eyes this whole thing has gone completely out of control for no reason, they are just doing their thing and suddenly the whole western market hates them, of course they are gonna lash out and blame Selen and try to reassure their investors, how is any of this their fault?! Well it is, because they never considered how it looked to us, they are unable to see things outside of their corporate prison so this response is totally alien to them. Remember these are the people who terminated Gundo over a fucking joke? And the japanese CELEBRATED it? Yeah, that is the kind of culture Niji (and largely japan as a society) works on and it is their fatal flaw, they are steadfast on THEIR way of doing things, they are totally unwilling to see things any other way and actively mock the idea that they could be wrong. It is just pure undiluted hubris.
This is why they refuse to back down, this is why they haven't just apologized and gone back to business, they just don't see anything wrong with their actions. I think this is the main difference between Niji and Holo, Hololive actually decided to be humble and understand westerners, they know that the west is fundamentally different and their approach has to change to appeal to us. They even replaced Omegatroon with Jap because it clearly wasn't working and we know many of the talents have close relationships with their managers and have relied on them for support overseas.
Even the jew took a look and said, you know what? that is retarded, lets take some steps to assure I don't go full retard (again) and implode my company.
He probably saw the shitstorm and rightly thought that appearing considerate and responsible in the face of so much agency distrust would boost his good boy score much more than if he'd announced this any other day.