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TL;DR He was arrested for uploading a recording of the entire VN two days before the game came out, which, being a visual novel, debatably cost them sales from people who just read his video instead of buying it. It’s a bit like if someone filmed themselves turning the pages of a new Harry Potter book before the street date so everyone could read it.
Seems to me that it’s less “uploaded lets plays” and more “posted game footage before the game release”, and they nailed him for anything they could.
I don’t think piracy should be punished, but like, if you’re gonna do it, don’t post video recordings of yourself doing it before the game comes out my guy.