It does seem strange. He should have left with a general discharge if there was that much misconduct that he could not re-enlist. Oh the things that make you go, Huh?
With a General Discharge, you can go to the VA and six months later have it upgraded to a honorable. The guy was reduced in rank and given a BAR to reenlistment. Happens all the time
If the myspace stuff is correct this was a muscle-bound skinhead complete with bizarre tats and a hate band.
Very odd if he would even be allowed in the army.