Pause on mouse hover is a superb tool for moderation as it let you click the right moderation buttons to delete/timeout/ban the right person instead of clicking someone else on chat message pushing.
But it has ONE weird detail, the popup letting you know chat is paused prevents almost any interaction and certainly reading the last comment as it is below the popup and i find myself normally trying to quickly delete or react to messages usually ending up there in that position and having to scroll the chat to do so.
The solutions i think it would fix this is making the popup more transparent and not blocking interaction, or putting another kind of popup or in other place in the chat, or even a toggle to change it between the fix y propose and how its now.