Re "twisting of people's comments" - that's your interpretation based on your priors. People make these judgments all the time—in fact they come up in nearly every argument as soon as emotions get activated. You're overestimating what moderation can do if you think we should impose our own such interpretations. And they wouldn't agree with your interpretations in any case (how could they?) so you wouldn't get what you wanted even if we did. No one would! In fact it would amplify the complaints about moderation by many orders of magnitude.
If someone is wrong or you think they are, the helpful thing to do is respectfully provide correct information. If you can't or don't want to do that, please just chalk it up to someone being wrong on the internet and walk away. The one who stops posting first in tit-for-tat exchanges is the one who wins anyway.
Also, HN conversations are basically never good once people start arguing about what each other is really saying, so when things take that turn, it's a sign that it's time to stop.