Please, this kinda of subject should be addressed by PM.
The users are "watched" for about the time we want to, or when another moderator decides to lower his watch level. To this happens, we need to see that the user really deserves it.
As I saw at the log, the warn reason is "Flaming, Declaring revenge vs the mods". This is not an easy reason.
So maybe he will be on the watch list for more time. At least, is what I would do.
He makes some really cool sprite sheets, I hope he continues his works.
After that, I think this topic is done and should be locked.