In a statement, Capcom said they had "no choice" but to ban Dalauan "LowTierGod" Sparrow and Christina "CeroBlast" Tran from all Capcom-owned and operated events, including the Capcom Pro Tour and Street Fighter League, after being made aware of the situation that arose between the two players early in the week.
The incident in question started when LowTierGod and CeroBlast played a Street Fighter exhibition match which was streamed on their Twitch channels.
LowTierGod lost the match and, in comments to his stream, proceeded to make transphobic comments against CeroBlast. CeroBlast identifies as female and goes by she/her pronouns.
CeroBlast clipped the outburst and posted it on her Twitter, causing a stir in the FGC community.
That led to LowTierGod to receive bans from EVO and Community Effort Orlando.
However that was not the end of the story, and in a bizarre turn of events, CeroBlast found her own conduct under scrutiny after Tweets and VODs from her Twitch stream were uncovered that showed her liberally using racial slurs.
CeroBlast later apologised for the comments claiming she had become "accustomed" to the word after growing up "in NYC".
She was then handed a ban from EVO and East Coast Throwdown events and prompting FGC tournament organizers to work together to develop a unified code of conduct.
Capcom clearly felt that they had to send a clear message to their fans and players of the standards of conduct expected by their players by handing the players a "global ban" for an indefinite period.
Capcom has also stated they will "continue to closely monitor this situation and any others that may be inappropriate" showing that players conduct may come under increased scrutiny in light of recent events.