Pep has largely been MIA for a long while. Last we heard of him in the moderator section of the forum he said he was looking into helping solve the server situation (which was a complicated issue) but whatever he's been doing, he failed to communicate to the rest of the active moderation team through it. So we've been stagnating and answering countless PMs about 'why can't I change my avatar?!'. So after a long while, Ptoing took it upon himself to buy new serverspace, move the db and fix the problems with the forum (Adam helped and is now eating cake). This streamlined the 'chain of command' greatly as now this forum is owned by the same people that run it. This was a good time for a moderator purge from people who were no longer active in those roles, so Pep, Goat and Dan have been demodded.
As to what Pep is up to I really don't know, If he's around he can post and fill you in himself.
Maybe he's RIP? There's been a few pixelation members over the years who have passed away.
I'm pretty sure that's not the case.
He popped up online like what, 4 times? in 10 months (last time being the other day).
He hasn't given a shit about moderation duties whatsoever. All he has done during the few times he came, was comment on random stuff in the administration forum.
But alas, I guess it doesn't matter anymore.