One good thing about this preposterous move is it should convince every other university in the country that there is no point to trying to appease the Trumpistas, which Columbia did with its initial capitulation.  This got Columbia exactly nothing.  Every school take note.  Columbia should have gone to court back in March.  Now they will have no choice but to do so.  (The immediate impact of losing accreditation is thta students cannot access federal loans for their education.  The private loan market would probably pick up much of that slack, but on less favorable terms for the students.  In any case, the idea that Columbia University does not meet accreditation standards is beyond absurd.  But when you're dealing with extortionists, "absurdity" is no obstacle.)

UPDATE:  CHE suggests that the real purpose here is not to remove Columbia's accreditation, but to lay the groundwork for attacking the accreditor, when it doesn't do anything about the administration's complaints.