Some inferences I'm drawing from the rocklike silence of swcpoker and their actions.
The site is or was losing money. I'm not sure how you can manage this with a poker site but suddenly canceling a freeroll that had been scheduled for a month beforehand, literally hours before it was on, screams loud and clear that they literally couldn't pay it out. Otherwise, why not cancel it sooner?
You actually don't have to infer that they are losing money, they've said it outright in this thread.
Obviously they have the right to raise rake and reduce benefits, but they are doing it in the absolute worst way possible and it's painting them in a very negative light.