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Mahalo is no better or worse off for this incident.

The people who hate Jason and/or Mahalo still hate them. The people who like Mahalo, well, I can't imagine they quite match up with the profile of the average YC reader...

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Mahalo are worse off. There are plenty of people out there - me included - who neither knew much nor cared much about Mahalo but may have considered working there had an opportunity arisen. I wouldn't work there now though. That might not give Jason any sleepless nights, but I bet many better developers than I have watched this play out with great distaste and resolved never to put themselves in the way of the people involved.

That's exactly the point. If Mahalo was a restaurant and I am a dish washer, I probably won't think too much about who I work for and who I work with. But if I am a technologist then I would have to choose to work for a startup. Life is too damn short to be working for a dick.

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