I don't think anyone at SSG intentionally deleted his character. It sounds like a hardcore transfer glitch of some kind - some weird scenario they didn't account for. Automation is a beautiful thing when it works as intended.
Not much to say about this really as the thread will likely be locked soon and it obviously sucks to lose your things. I hope for the best for fire and am sure we will see him back in the game at some point. I believe SSG has been good at eventually getting these things worked out but it takes time.
A break would probably be good for fire - there have been many accomplished players in this game, but none who continued to grind hardcore for so many years. I dread the thought of running for more rxp and I have maybe 1/4 of the rxp as fire across my 3 winged characters. The raiding scene is not totally dead on Sarlona thanks to the Easily Distracted Gaming community - but I really miss the days where current raid LFMs would go up several times each hour. Without raiding there is nothing to break up the grind and the game is kind of sucky in it's current state.
I hope it all works out with fire's character.