It seems you have been given the correct answer, yet because it is not what you wanted to hear, you cling on to the hope that you will be proven correct. It's common to see, I do it too with certain things.
Who am I? I'm the guy who wrote most of those laws.
The technicality of whether you're a reserve or not is inconsequential. InRP, [LN] personnel hold ranking authority over independent players. Why is this? Because the [LN] are recognised as the representatives of the Liberty Navy NPC faction, and their players have subjected themselves to many restrictions that the faction places, most notably the restriction of capital ships, other rank restrictions and the required adherence to a much stricter chain of command than you. Nowhere is this written, but you will find that the [LN] roleplays that. You don't have to like it, you don't even have to play along. You can just let the [LN] play in their own little world if you like.
Now, when they issue orders, you're not obliged to obey or even acknowledge them, as would be your choice if it were real. That's roleplay, as long as you have a character-driven reason to do so. And in roleplay, the [LN] will respond as it deems appropriate. Whether you agree with those consequences, inRP or OORP, is also totally irrelevant. If you piss them off enough and give them a reason to exercise their right to make you hostile to the faction, and that's not okay with you, you should have thought about it before.
The [LN], and official factions in general, have these powers because they earned them and continue to be official representatives of that NPC faction. You're free to disagree and disobey inRP, and they're free to use the tools they've been given to force your compliance or eject your character from the faction. If you don't like the consequences, don't play the game. There are plenty of other factions that run their space in less authoritarian ways.
Your last line really sums it up - you're complaining in an OORP manner about an inRP event. "Letting someone go" isn't against the rules. In fact, the Liberty Navy ID doesn't obligate anybody who equips it to actually fight pirates, terrorists or wars with other houses. You could have a Liberty Navy character that just doesn't shoot his/her guns.
Lots of people don't like being told what to do by people they don't know, have never met and have no respect for. Unfortunately, that is what a military is like. I don't think many recruits or lowly ranked officers have had more than a passing exchange of words with the top of their command chain. Furthermore, this is what Liberty is like. Maybe you don't like it, and that's okay. But nobody is forcing you to do anything, like they would be in real life.
Now sure, you can say that I am/used to be [LN], and are therefore "biased". However, it's quite obvious you're hoping that someone of authority will actually take your side and exercise some consequences on the [LN] faction or the [LN] player in question. Unfortunately you have not taken the steps that would potentially result in RP consequences for the character, nor have you taken the steps that would potentially result in OORP consequences for the player.
That makes this thread a general complaint thread. Official factions tend not to be so responsive to those, if that was your intention. If it was instead your intention to show the [LN] in a negative light, I can only tell you that the faction is used to it, with the same people showing up on each side to attack or defend it.
