This was my reaction as well, Tom. I sure would like to know what particular conduct their National Fraternity (as opposed to the local chapter) engaged in that would justify banning it from having chapters on any other campus in the Commonwealth. In cases like this one, the most common fact pattern has the national fraternity being completely unaware of the incident until after the fact, and its liability being premised on a "vicarious liability" basis (e.g., negligent failure to sufficiently train, supervise or discipline the chapter and/or its members). That is a far cry from intentional misconduct.
If I was a member of a Pennsylvania chapter of this fraternity that is now forced to close because of what these undergraduates from a New York chapter did while in Pennsylvania, I would be feeling distinctly unhappy about the situation. I never did like collective punishment.