I think it is.
"Why not just increase the price of Apollo?
One option many have suggested is to simply increase the price of Apollo to offset costs. The issue here is that Apollo has approximately 50,000 yearly subscribers at the moment. On average they paid $10/year many months ago, a price I chose based on operating costs I had at the time (server fees, icon design, having a part-time server engineer). Those users are owed service as they already prepaid for a year, but starting July 1st will (in the best case scenario) cost an additional $1/month each in Reddit fees. That's $50,000 in sudden monthly fee that will start incurring in 30 days.
So you see, even if I increase the price for new subscribers, I still have those many users to contend with. If I wait until their subscription expires, slowly month after month there will be less of them. First month $50,000, second month maybe $45,000, then $40,000, etc. until everything has expired, amounting to hundreds of thousands of dollars. It would be cheaper to simply refund users.
I hope you can recognize how that's an enormous amount of money to suddenly start incurring with 30 days notice. Even if I added 12,000 new subscribers at $5/month (an enormous feat given the short notice), after Apple's fees that would just be enough to break even.
Going from a free API for 8 years to suddenly incurring massive costs is not something I can feasibly make work with only 30 days. That's a lot of users to migrate, plans to create, things to test, and to get through app review, and it's just not economically feasible. It's much cheaper for me to simply shut down."
If he killed the current app as intended on the 30th and started a new one which is subscription only, the above issue would be negated.