This is starting to look like the fight between Chainsaw Panda and mj4...
As Mini said, the way people take these words differs per person. Ace saying "I was typing, asshole" does direct to someone. I agree that he could choose different words, but instantly demoting him for swearing seems a bit far fetched.
At most Ace will be given a warning, and not be demoted. It's better to ignore people that swear at you, instead of immediately requesting him to be demoted. If you can't deal with this person being a Moderator, find evidence (not including swearing, except if it's a lot) and give arguments as to why he should be demoted.
Since I don't want to repeat what happened just two days ago with Chainsaw and mj4, I suggest an admin close this thread, and if that doesn't work, get these two in a Teamspeak chat and talk it out.
Greetings,
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