Why would the location have anything to do with Jagex erasing you?
Most people tend to RWT at places like Lumbridge, the GE etc. and so maybe Jagex is now lightly monitering certain places/world that have been known to be RWT hotspots, and taking action against large one-sided trades as part of their actions to remove goldfarming from the game? It is possible that when Oxo was doing his trade, it somehow alerted Jagex, who subsequently took the item he was trading along with most of his GP from all his mule accounts.
This is just a theory of course, but it makes sense to me. Most people I have traded with before tend to want to meet W5 or W8, lumby or GE. It could just be a coincidence, but those are pretty well known trading spots. It wouldn't surprise me in the least if Jagex were monitoring those spots as a strategy to eliminate gold traders.

































