Here's the point: For one you're running a wizard, which is basically a unbalanced class. Not to mention of the divination/Foresight school (which is about the least balanced one).
If your dm nerfed you so much, you were probably the dysfunctional element of the game. While this is largely a shot in the dark, from the events described, I'm thinking you were power-gaming and probably broke the GM's world/adventures, ruining any prep time he had.
Another possibility is that your GM was sure you were cheating. Of course, this would require he have some kind of solid foundation for thinking so. I find players who tend to fudge rolls away from the GM, negotiate events with the GM too much, metagame constantly (especially for PVP), make up facts/answers/lie about previous events so they'll suit their needs, begin rules wars when they themselves are cheating/applying the rules wrong, use homebrew elements to rip through the allowed limits and players who handwave/estimate stats and answers are more likely to incur GM wrath.
Easy ways to know if you've unbalanced a character; was your wizard broken in any single stat (not just the classic high int, like a ridiculously broken stat)? Did he have a trump card ability that just made him untouchable? Like a wizard with infinite spells, contingency-ed teleports, wizards with hp rivaling a fighter's, unfair/over-your-level magical items, too much money acquired through metagaming/PVP-tks or given the entire post, maybe he just felt your cheating with prescience so far was obviously at the source of your being overpowered and did what he could to fix it.
Like Skullking put it, "you have managed to circumvent some of the challenges he has placed in the game using a legitimate power" your GM probably disagreed. Plus anyway the Arcane Power book is anything but balanced and the wording for the power is badly done/too vague, my own GM just outright forbade the book.
This is of course all under the presupposition that you did in fact cheat or somehow brought on this clearly angry gesture by doing something. Sure you can be a petty child like some people suggest and just quit (although don't do it by phone/email/text, quitting is like a breakup, in-face or cowardly) but I'd suggest talking with your GM about *why* he did what he did.