A league should have written rules to cover this. Your position is very reasonable, theirs is ludicrous. (Your discussion of the merits of the trade was totally irrelevant.)
However there were already signs that this is a league headed for trouble, and you were a part of that. You are playing fantasy in November without having paid your dues? That's already a sign that this league is going to have problems. This is not a serious league and the people in charge don't know what they are doing.
I would simply withdraw from any fantasy discussion with these people. Whether you should pay or not is a question with no satisfactory answer. You should have paid already, but it is ludicrous to pay a corrupt league.

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