Looks like you are correct. I left my trust settings on default and Lauda does appear to have been excluded.
What would have happened is one of the dt1 level members that had added Lauda to their trust network must have removed Lauda. Pretty sure to become DT2 you need 3 DT1 members to add you.
That's my understanding anyways
Wondering how you noticed this so quickly, possibly an alt account that's no longer painted red?
Edit: Great explanation below, cleared it up for me a bit.