I will say that I think that this is more of a bottom-up thing, and an issue of different members misinterpreting/not necessarily understanding or realising the gravity and effect of that particular word being alluded to for a joke - and making amends on those lines now that it's clear - rather than one of whether the moderators should have stepped in immediately.
(I will also say that if you thought it had been resolved amicably, a very quick way of making things not amicable again when someone is clearly upset is to just respond by saying "I don't get what the issue was"! I really think you should probably think carefully about your next response, as obviously both HerSereneHighnessAnniFrid and Suomi are feeling quite upset and I don't think they appreciate being made to feel irrational for it any more so than you would if you were. xx)