I'm shocked that I have to explain this to anyone, I really am. For the short while that his posts were still viewable by the general public, any one of you could have looked at his former posts and realized that this person wasn't only trolling, but had joined for the sole purpose of doing so. Both the manner and content of Butters' post should have raised suspicions, and even his name should have been a tip-off, but alas I will have to explain things for those who were fooled.
There aren't a whole lot of things that can get you permanently banned around here at the drop of a hat; you have to really, really fuck up for that to happen, and sufficed to say Butters more than met the requirement. Making new accounts to mess with people is unacceptable, Spamming the whole forum even less so; but by far the worst thing Butters did was his vicious attempt at slander. You do not ever make something up like this about someone else. Even if his story was true(which I must stress it is not), Butters crossed the line by posting about it on the message board instead of the master server reports where it could be dealt with privately. It is not anyone's place to generate drama for revenge.
I'd also like to explain for a moment the various edits that have been enacted here; the name was removed because the person Butters was slandering shouldn't have to have even the accusation hovering over his head, nor should he have to give a second thought to whether or not he is in any way associated with the troll by others. For similar reasons, the replies previously in this topic were removed, as I do not believe that anyone should be the subject of ridicule or pointed fingers by the masses, whether openly or in private, simply for being fooled. That said, those who know the names of either the victim, or the posters who replied should not share this information.
The appropriate action has been taken, but in the future if you see a post like this, tell a moderator or administrator about it immediately. The quicker such things are dealt with, the less damage is done.