Was this a comedy show? Was the victim of the insult expecting to be harassed by the audience? Is that normal for this venue?
No.
They banned a guy for making the "OK" sign, claiming it was racist. IDK if that was ever overturned, but the "woke precedent" was set. Them's the rules now.

I hope they'll "walk it back" but sending the message was important! Do NOT do this.