Banned for Reputation Grinding?

My character, Madmardigan, on the server Twisting Nether was in dire maul farming his goblin reputation away.. here's a small backstory.
Madmardigan loves reputations. Loves them bad enough to get honored with the magram centaur and revered with the gelkis at the same time. Why? He saw a reputation page on a character by the name of Azelea. Go ahead, check her out.
http://www.wowarmory.com/character-reputation.xml?r=Whisperwind&n=Azelea

So, about three months ago I went ahead and sacrificed my goblin rep from revered to max hated.. and brought my bloodsail rep to revered. I knew that I could restore my goblin reputation without harming the bloodsail rep by doing gordok shackle key and ogre suit turnins in Dire Maul North wing. I did a bit of this from time to time over the months, but I was never too serious about it. I did make some great money with enchanting old world loot but that was never my focus.

After getting some other goals accomplished reputation wise, I felt it was finally time to get to at least neutral with the goblins so I could use their cities again for flights and banks. I pounded my head against that instance nonstop for nearly a week straight. I would go in, kill three bosses, run out, and reset the instance - all in hopes of getting that pretty rare drop gordok shackle key to raise my goblin rep. When you enter an instance, the game checks back an hour and sees if you have entered 5 instances or more. If the answer is yes, it says you can not enter any more because you have entered too many. When this happens, I just wait outside of the instance and play my playstation a bit. Definately eases the grind a bit.

I started to really enjoy the game I was playing on the playstation so I would enter the instance, kill the first boss, see if it dropped a key. If not, leave and reset. If I hit the reset cap, then I just play the playstation some more. The first boss is very easy to get to (Guard Moldar I think his name is) so this worked out pretty good.. Once I got out of Hated though, I knew I was close so I didn't turn on the PS2 all day. I pounded my head through that instance and went pretty deep into it so I had more of a chance to get that key. The reputation was more important to me at this time. By spending so much time in the instance, I wouldn't hit that 5 times an hour reset cap and could do it non-stop. Having a repair high elf guy in there helped out a ton for vendor trash and the like.

I was ONE shackle key away from getting to neutral when I was disconnected. "Your account has been permanently closed." Here's the e-mail I recieved:

This is a notification regarding the World of Warcraft account #######. Access
to this account has been permanently disabled for exploitation of the World of
Warcraft economy or for being associated to accounts which have been closed for
intended exploitation. While we try to be as lenient as possible in our
assessments of the results of exploitation investigations, exploitative
endeavors on your accounts have ultimately lead to their closure. The recurring
subscription on the account has been disabled to prevent further charges.

Here's my character. Look at the reputations. I promise you, they go along with my story:
http://www.wowarmory.com/character-sheet.xml?r=Twisting+Nether&n=Madmardigan