...of jumping several levels of the org chart to demand punishment - especially termination - of a lower level employee. I've definitely seen it, but those leaders were never respected and the organization had close to 50% turnover. Interestingly, the situations I was aware of also related to emergent personal situations that were really sad, and employees had to make difficult calls about how to handle them.

Are you her manager or not? Why don't they trust you to handle the situation yourself?

Your company might be avoiding a future disaster employee, but you'll never know. She might be an all-star. But it sounds like she's certainly avoiding a brutal employer. Too bad she didn't realize it before she relocated and her house flooded.