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I know, I was there. It was a MESS. I have a sfw blog and even I was flagged on a post or two because they just threw an open-source bot that could not handle a site like Tumblr. I only vaguely checked it once or twice on my phone and most of the "offensive" images were just gifs of animals and some of my art for having too many 'flesh pixels' even though nothing strange or lewd was happening in them. ^^;
The nsfw ban was just a cover-up for the ACTUAL reason why they were taken down, it was due to very sketchy and rather aggressive groups that have been reported to Tumblr many times but haven't been dealt with. The NSFW ban made no difference, many of these groups are still there and porn bots still lurk. The sheer fact that Tumblr explained the ban badly and even their own staff posts were being flagged was...quite a shitshow. x3
I do believe Tumblr only harmed themselves though, a lot of their userbase was nsfw artists making money off their work. They lost a lot during that ban. ; w ;