My name is not against ToS/Rules - Yet being forced to change it

[Petori]

The attempts to justify this name are absurd.

In Japan, "loli" is a sexualized underage girl. Do we need to go on?

This is not "Peter Loli" we're talking about. When you lead with a Japanese word like "Sensei" or "Senpai," you are inviting, indeed welcoming, the Japanese interpretation. And wouldn't you know it? The character in question is a female lalafell...

"Loli" culture in Japan is not "cute" or mainstream. It is a "nudge-nudge, wink-wink" subculture that uses code words and pushes up to the limit of what the law will accept.

In an online game, you don't get to play with just your subculture. You have to play with real people from real life. It's no wonder that the name was reported.

At first I thought that perhaps OP was simply unaware of the connotations. But keeping the last name the same even after the "change" pretty much rules that out.

Citations needed. Seriously your post is a prime example of how many conclusions you can get to due to sheer ignorance on the subject.