Hindman declared martial law in the spring of 1862 and remained in Arkansas until the sprint of 1863. Davis couldn't have been too upset.
"Hindman's edicts however raised the ire of the local citizenry and they, and Hindman's political enemies, demanded that Richmond replace him. By August of 1862 the authorities in Richmond decided to replace him with the well-meaning but incompetent Theophilus 'Granny' Holmes." [From Wikipedia]
Hindman was reduced to simply commanding the 1st Corps in the field. Your saying that he remained in Arkansas until 1863 was true, but his martial law was rescinded by Holmes. You left that out.
Contrast what Davis did in relieving Hindman of overall control, with what Lincoln did with respect to Beast Butler. Lincoln even offered Beast the vice presidency in 1864. Fortunately for all of us, Yank and Reb alike, Beast turned it down.