Since we are all speculating here, I will add one based on no solid knowledge except my experience with administrative structures in my professional life (and a bit of knowledge of human nature I got from that), and a bit of knowledge about how people get promoted in the CCP. What I am writing below is basically a novel "based on real life", but bear with me, see if it rings true.
This guy Gou Zhongwen is head of the GSA, and has no real knowledge of sports per se, although he was involved in planning for Beijing Olympics. He is a true-believing communist ideologue. He was put into the position partly to clean house after a previous corruption scandal -- and anti-corruption is one of the main themes of Xi Jinping (who has weaponized it). Still, Gou is a bookish guy who knows nothing about sports, and he has to feel a bit defensive about that. That would be fairly normal, especially if this guy has any insecurities at all.
Meanwhile, one of the guys who is in GSA is Cai Zhenhua. He is Deputy Director of GSA for 10 years, and you inherited him from the previous administration. He is a real athlete (former world champion, in table tennis). And imagine that he is frequently in your face, opposing you, subtly making fun of you, and in general pissing you off. I am imagining this part, but this is often how people who know things react to new bosses who don't know things. Some athletes have a special machismo they often use in later life, and Cai Zhenhua is not shy. Easy to see how Gou might hate him.
And suddenly this scandal of table tennis -- Cai Zhenhua's sport. If you are Gou, this is your chance to crush him once and for all. Bear in mind that politics everywhere is a blood sport, especially in China, and there are winners and losers, and up until now Gou has been a winner and he is 60 years old and has been at this his whole life. He may not know a loop from a block but he knows how to get things done within the Party.
Maybe the other damage -- to LGL, CNT, the CTTA, the players, the Australian Open -- everything -- is collateral to that.
I am pretty sure it is not much fun to be an official in the CTTA right about now.