Why would a random browser extension take it upon itself to snoop on your traffic to ensure that the websites you're using can't be used for illegal things, and then intentionally break it if it detects something it thinks it's illegitimate? That's a huge breach of privacy. It's just malware at that point. It's not like a court of law would hold your browser extensions responsible for your piracy. That's like blaming a cup holder because the car was used in a robbery.
No, I think this is just a bug. Especially since people have reported that the extension breaks other websites too.