RedHat has to permit the redistribution per the GPL. But there is nothing stating that your support contract can’t be cancelled if you do it. (I don’t have any first hand knowledge of this, just a guess).
Grsecurity also uses this 'loophole.' Seeing this scheme go mainstream is really disheartening; I feel that it really undermines the intent and social value of the GPL.
See Bruce Perens's explanation: <https://perens.com/2017/06/28/warning-grsecurity-potential-c...>. The short story: adding a penalty to an action that the GPL allows is a restriction of that action, and the GPL does not allow setting additional restrictions. This has not been tested in court, as far as I know.
My understanding is that Red Hat does allow redistribution so long as you do not infringe on its trademarks. Given that no version of the GPL ever granted trademark rights, this is not an additional restriction, so this is fine.