Pking in any style is allowed, except to item scam. "Pj'ing" is allowed, but the reason this situation grew was the agreement that was made (see the public chat screenie). This has cause issues with Steller's status of being mod, but for now has been sorted.
Judgement:
Steller and others involved will return furious' items.
Steller will not be demoted or banned.
Steller has understood his "do's and don'ts" of pking as a staff member.
Case:
Closed.