Trust ratings are not moderated, but that does not mean trust ratings can be given out for any reason without consequence. If feedback is being left for questionable reasons, and/or under questionable circumstances, then others will be reluctant to trust his opinions and other trust ratings. I disagree with the rating, and think it shows poor judgment, and I am posting that opinion.
I'm not sure what the questionable reasons and/or questionable circumstances in this case would be. It sounds like he had banned an account due to copy-pasting, which violates a rule that was put in place for a reason. Because he has the power to ban, this would be the first step, as it was, and shows that he has concerns with the account because he is banning it. An admin overruled the ban, but hilariousandco still doesn't trust the account, his next option as a DT member is to warn others about the shady activities of the account. Whether there is some sort of vindictiveness or ego behind the decision is speculation, the statement he gave as the reasoning implies to me that he was trying to help others by warning them of the account's activities since it had been unbanned, which I think is a legitimate use of the trust system.
I don't think it is so much that hilariousandco is a moderator, but rather that he is a moderator who advocated for certain action to be taken over an issue, was overruled, and left feedback over that same issue.
He didn't go back and re-ban the account, so his action as a moderator was overruled and accepted. I have no problem with someone expressing their opinion as a DT member after that. If a moderator cannot act as a DT member, why are they on DT? If he had left feedback first, and then banned the account, would you have a different opinion here?
I guess my thought on the situation is that hilariousandco, if he was NOT a moderator, would have left feedback as a DT member stating the account was copying/pasting. Because he was a moderator, he banned because he has that authority, and Cyrus has the authority to overrule it... but hilariousandco still has the right as a DT member to leave feedback because of his personal concerns.