Yes. You would expect that only sites like facebook would do that. It seriously discredits Paul Graham and Y-Combinator. After dealing with Hacker News, who would ever want to trade with anything Paul Graham is involved with?
Looks like people don't like it when you criticize their idols. People forget Paul Graham is in the business of making money. Ethics and morality are not a prerequisite. They actually start getting in the way once you reach a certain level of fame.