Wow, so a guest gives regular feedback and gets kicked out of the system ... to those who thinks that this is OK, it's not. Giving feedback, both good and bad, is both necessary for those in the service industry. If what the OP says is correct (and there are multiple angles to a story) then Hilton are being bad sports. *wait, please don't close my account Hilton as I am being negative against you here*
From the purchase point of view, although the terms limit to 80K purchase per year there have been promotions where the points limit have been temporarily raised where you can buy 80K and receive 80K in one go. My wife and I have both used this to points boost our accounts.
From a fraudulent point of view, this one is hard to fight against because once a company hides behind their "terms and conditions" even though there may be no rhyme or reason, it's game over - and up to the consumer to try and win this through the court, consumer watchdog etc.
Moving forward though, do a credit card charge back for the 160k points and you might get your money back .... you probably will have to accept to forgo the other 100k you earned from your stays etc.