This is a fairly narrow decision. The lower court said Snapchat was immune under Section 230 (https://en.wikipedia.org/wiki/Section_230 https://en.wikipedia.org

This is a fairly narrow decision. The lower court said Snapchat was immune under Section 230 (https://en.wikipedia.org/wiki/Section_230 https://en.wikipedia.org/wiki/Section_230), and the appeals court is saying no, the issue here is a feature of Snapchat itself, not user generated content, so Section 230 doesn't apply, and they sent it back to the lower court to try again. This is the correct decision. If the suit is going to be dismissed, it needs to be dismissed on valid grounds. If there is no valid reason then it must continue towards trial, where it could still fail on the merits.