Did they ever give you an explanation? I've used Hetzner for 6-7-ish years, and _never_ had any problems with them. I have mostly used their dedicated servers service, though.
Their security team was concerned that I was impersonating myself.
They sent me a boilerplate e-mail that there was a problem with my account and to contact them to resolve it. I called them within 10 minutes, and they told me 'your account doesn't exist'
They restored my 'account' which means i had a user with the same login and password, but all of the assets to the account were tossed to the wind.
I can only guess that someone jumped the gun, (assuming they had an internal process at all).
Imagine running a database in the cloud and someone deletes all of the database nodes in the cluster, all of your data, and your backups of the data.
VMs can be disposable, but if you have data you want to keep, you should have a second copy hosted by a separate organization .. well that was my lesson anyway.
They were rather standoffish in their communication despite me attempting to be polite as possible to try and get my stuff back, so I did not want to continue with them.
I'm mostly just using digital ocean these days. Their API is fantastic.
These days I do a better job of keeping code in github even if I'm the only user, and backups can go anywhere as long as you're not relying on the same provider.
They mistakenly deleted all of my virtual machines and all of my backups.
If you host anything with them, or anyone I guess for that matter, make sure you have your backups hosted somewhere else.