Ed is taking it personal and there's two things wrong with him dinging Wes for that.
First of all the "offense" was committed before the warning existed. While there is no rule against issuing points for previous infractions, at the very least it's tacky and vindictive.
In the real world if a law is passed you're not guilty of breaking it before the fact. In my opinion the same principle should apply.
Rich gave Wes a ding for the same offense, but it was committed after the warning was created, Rich didn't go back and warn him for the previous post.
Secondly, the general consensus among the mods when the program was first started was that we would not issue warnings in thread we were participating in since it made it personal. Once again there is no rule against this, so it's not clear cut abuse, but we all understood the idea behind it agreed that it was in bad form to use the warning capabilities against someone you were personally involved with.
As an example, there was a thread I was involved with where a certain individual called the people who held the opposing view, myself included, idiots and morons, but I refused to issue him points for the name calling because I was personally involved. It's just bad form.
I don't like Ed's moderating "style" if that's what you want to call it. So far I think he's only the second one with whom I haven't agreed with their methods. He doesn't demonstrate the ability to maintain the objectivity and level headedness required for the position.
Regardless though, that is how the system works, and he along with anyone else is free to pay the cash to give out points. In this case however, I tend to believe that the ability to issue points was a deciding factor in the amount of the "donation".
It's wise to consider how such actions have the potential to affect public opinion towards you both on a personal and business level.