So they have to now remove flag or support of the flag.
No, they don't need to.
Please read it again, more carefully:
[...] terragreen violated a written contract, resulting in damages, in the specific act referenced here. terragreen did not make the victims of this act roughly whole, AND it is not the case that all of the victims forgave the act [...]
All supports will be removed once everyone who got scammed forgives you.
If there is at least one person not forgiving you, the flag and support remains valid.