Google probably said something like: "For now we ask you to not use our Logo and trademarks anymore and if you comply by shutting the project down, we are happy to leave it at that.

If however you decide to continue we will come after you for the numerous other issues this project has such as the fact that it is an unauthorized modification of our official youtube app, primarily used to deprive us and our partners of income.

It's your choice"

Google lined up their troops and fired a warning shot. Vanced recognized their unwinnable position and surrendered.