Alright, I watched the demo, and looked at the screenshots, and I don't really see anything that he was doing to mandate a demotion.
Things that would be classified as demotable would be abusing the tools awarded to you with regular status (Adv Dupe, Stacker, etc.)
What he did do however, is act like an ass.
So in response, he wont be demoted, but he will receive a 4 day ban.
So to Sirmksalot, if you hopefully read this.
In the future tone it down a few notches, you were being abusive towards the other players, and if someone does start harassing you while you are building, you are allowed to take measures to mitigate them harassing you if that was the case. But be careful here you are not allowed to punish people this is an important distinction.
An example of punishing someone would be to chase them around the map with a pew pew weapon and blow them up for messing with your stuff. If someone does mess with your stuff, just report it, or better yet call an admin/vip.
In regard to in-game buildings, they are a first come, first serve item. And you only have the right to hold a monopoly over it, if you are actively using it. once you are done building/give up on it you are more than welcome to use your improvements, but once you are done and move onto something else. You need to clear out for the next person to use it.
Reserving it while you go off and do something else isn't allowed.