Usually "shadowbanning" means, that the user is banned in such a way, that he is not aware of that. So he can still post, but his posts don't appear to anyone but him.
What I think GoldenOne means, is that the status under his avatar (also after hovering over it) still shows "Active Member", so in this case it is the other members that are not aware he was banned and may assume that he doesn't respond for one reason or other. Frankly, I agree with him on that. If you banned him, then change his status.
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That is just the way our platform, Xenforo, works. All banned members remain hidden from membership. Here is the statement from forum FAQ:
"Why do banned users still show as normal members and appear in the member list?
This is the designed behavior; there is no outward indication that a member has been banned. Their user title stays the same and they will still appear in the members list. If required, you can manually change a banned member's user title, or create a user group with a higher display styling priority and add them to it. To prevent them from appearing in the members list you can change the user state to anything other than valid.
http://xenforo.com/community/threads/frequently-asked-questions.5183/#post-180445"
Other forum software like VBulletin show the member as banned. It is a social issue as to whether it is good or bad idea to show a member as "banned." It is like a company having a list of employees they have fired. You don't see such lists.