Malicious compliance is the art of following the rules knowing that it will have an undesirable or unintended result. In this case, neighbors objected to a new fence that was slightly too high, forcing its owner to cut it down to the allowed height. While reading the building code, the owner realized she was allowed to paint the fence any color she pleased, and did so.
I'm not sure I'm on her side, frankly. Wide shots of the street show that the front-yard fence is the only one in the hood, casts shade, and obscures the driveway even after the chop. Worse, she gave her neighbor (and the world) the "rough" side with the posts out, a classic dick move in fence construction.