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People lost their shit because they where told to, the Selen stuff breached the normiesphere with people like asmon and charlie talking about it, a huge chunk of the "outrage" wasn't even vtuber fans, just drive by tourists led by their emotions as 90% of zoomers are.
This combined with the black stream created the perfect shit-storm, anycolor never had a single winning play there, Doki spent 2 weeks going on and on about evil anycolor was and she felt bad, but she had no choice but to expose them, this led to the black screen stream and probably the only means the EN livers had to defend themselves, but it was interpreted as the worst thing.
Funny enough, after the stream Selen shut up, she hasn't mentioned the company at all and dropped all pretense of exposing them or lawsuits, so clearly she heard something that made her scared.
Hololive is already loved by normies so its not like the information of her graduation has anywhere to go, most western vtubing fans see them as a shining beacon of vtubing, there is no outrage and there will be no outrage as the overall western fanbase already picked their sides.
In conclusion, western vtubing was a mistake and should have never left Japan.
