It seems like vb.ly broke the rules and received several warnings.
Did you read the link you used as proof?
It clearly states:
It's official: the Libyan government has seized vb.ly. This was done with no warning.
Further, more evidence that this was done without warning from another source:
Our domain ‘vb.ly’ (which was joint owned by myself and my partner Violet Blue)was deleted by NIC.ly without warning or notice on or around September 23rd 2010.
Apparently the real reason is not this website's content but this rumored goal:
You may also not know that since June 2010 .ly domains less than 4 characters long may no longer be registered by anyone who isn’t in Libya – which suggests there is tension around foreign owned, high-value, short .ly domains.
Explanation given to domain owner by NIC.ly:
"your domain being removed from NIC.LY records and made available for re-registration for locals"
In my opinion, the Libyan's are stealing domains back.
It is interesting that the company that made this decision is run by Muhammad Qaddafi's, the eldest son, Muammar al-Gaddafi as the Chairman.