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The money and activism was from his PAC, Leaders We Deserve. He just can't also advocate from the inside anymore, which is a shame.
It seems probable that he had already made his point internally and was facing the grind of bureaucracy with the competing agenda.
I know Ken Martin (DNC chair) is a shrewd operator, so with what little hope I have left for a progressive party takeover, I want to believe this signals tacit acceptance if not approval. This might play out something like this: As Hogg's primary challengers meet polling thresholds against incumbents, we would see a "retargeting" of DNC funds from the incumbents to spend against Republicans elsewhere. They can't actually cut off incumbents for what should be clear reasons (literally politics). And let's be real: Ken will also be considering the post election power of successful incumbents; i.e. any ramp down will take into account the existing party power of the incumbents.
I'm not hopeful that we'll see any big power brokers fall. I am hopeful that he can get several loud progressive voices elected to start reversing this rightward ratcheting.