A Competitor Crippled a $23.5m Bootcamp by Becoming a Reddit Moderator
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A competitor allegedly crippled a $23.5M coding bootcamp by becoming a Reddit moderator and spreading defamatory content, sparking a heated discussion about Reddit's moderation policies and the impact on businesses.
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“The Story of Codesmith: How a Competitor Crippled a $23.5M Bootcamp By Becoming a Reddit Moderator”
An interesting part of this article is LLM chatbots regurgitating what seems to be defamatory comments by a rogue moderator who took over the coding boot camp subreddit. Google also seems to surface this person’s comments in search results.
That said, in this instance Codesmith actually has an unusually strong defamation case. That Reddit mod is not anonymous, and has made solid claims (about nepotism with fabricated details, accusations of resume fraud conspiracy, etc.) that have resulted in quantifiable damage ($9.4M in revenue loss attributed to Reddit attacks,) with what looks like substantial evidence of malice.
Reddit, though protected to some extent by Section 230, can also credibly be sued if (1) they are formally alerted to the mod's behavior, i.e. via a legal letter, and (2) they do nothing despite the fact that the mod's actions appear to be in violation of their Code of Conduct for Moderators. For then matter (2) might become something for a judge or jury to decide.
I'm actually confused as to why Codesmith hasn't sued yet. (?!?) Even if they lose, they win. Being a plaintiff in a civil case can turn the tables and make them feel powerful rather than helpless, and it's often the case that "the process is the punishment" for defendants.
Maybe because they don’t generate enough income to be able to afford a lawsuit that drags on for years? Or maybe because it is really hard to win defamation lawsuits? Just my speculation.
(I realize that it's absurd and inherently unjust that the legal process is so expensive.)
IMO, even if it just gets the offending poster deleted, it would be money well-spent. The marketing/PR hit is just brutal. I blame Google for this.
And there are still lots of blogs. Not all of them are SEO blogspam. And there's always libgen...
Reddit is pretty much the last place I'd go for reliable information, especially if we're talking about anything that's a commercial product.
"Old fashioned forums" absolutely suck for discoverability. You have to waste time digging through posts, most of which are unrelated or just filler. No upvote/downvote and usually a mediocre threading mechanism. While we are on this topic, Discord is the same. IRC like applications are not an easy way to get to the point for the same reasons.
Discord and Reddit have so much repetition and fragmentation because there's no real organization of content, and people with no expertise often weigh in and even get upvoted because the average user is not particularly knowledgeable and the experts aren't on 24/7 looking for new posts to contribute to. On forums topics are stickier and get bumped when there's activity so experts more often find relevant threads and it's easier to judge reputations on forums.
Granted, badly managed forums are bad. If question threads from new users are mixed in with everything else they can quickly dominate search results. You need to be able to filter, but IME most forums do have pretty decent filters.
20 years after Reddit started, the best that the forums can offer is perhaps discourse.org, which is barely any better than traditional forums – sleeker UI for sure, but it's still fundamentally the same unworkable linear format. It's like sticking to magnetic tapes in the age of SSDs.
Even Facebook, one of the dumbest discussion platforms, has nested comments. Terribly implemented of course, but how does the platform designed for the lowest-common-denominator kind of user have more advanced discussion features than forums made for discussion connoisseurs? It is utterly baffling.
But the main problem, to repeat for emphasis, is that the upvote/downvote system (even if it's fair and used virtuously, and it usually isn't,) stifles disagreement and debate.
When I append "reddit" to my google search query, I'm not looking for "disagreement and debate". I'm looking for specific information on non-political topics, such as repairing my car, finding a good product in the sea of garbage, or learning new techniques. Such topics are typically discussed cooperatively rather than adversarially. For this stuff, consensus-seeking is a feature not a bug, and where the consensus appears inadequate, I'm well capable of looking past the top post. Reddit's format is not perfect, but it's better than having to read through a 30-page thread in which most messages are irrelevant to most other messages. Such threads are linear only artificially through a UI that hides the structure of the underlying conversations.
If you don't like the upvotes aspect of reddit, we could settle on the same nested format but without sorting by upvotes. But with forums, we don't even have that.
Reddit's comments aren't one-liners because Reddit's format encourages that, it's because it's the most popular site where everyone goes. If forums were as widely popular, they would see the same people making the same comments there too.
Forums shine as spaces for focused communities, where people have reputations and care about the subject matter. Time-sorted discussions are great because that's what's happening - a discussion in the community. You don't want to read someone's quip first, you want to get the whole context. You don't want there to be upvotes that people try to earn - there's already your reputation in the community. If someone's a troll or gives bad advice or is wrong, they'll get called out, or banned, or simply ignored as everyone knows they aren't respected.
Forums just aren't meant for generic content and it's not because of the UI, it's because the entire concept is not compatible with masses of semi-anonymous users with no commonalities.
People do not scale.
What are some examples? In my experience there are numerous other communities of various types for any given interest. Reddit is just kind of a convenient surface level a lot of the time.
Reddit wasn't even that good as a community space in the first place. It was a content aggregator with user-moderated comment sections, and those make for pretty awful communities because on anything remotely controversial you get factions dog piling each other trying to hide each other's posts.
That said, communities are all on discord now, and quite honestly I think it's for the better. It gives moderators a lot more discretion, but balances the scales by making it very easy to create new servers where one can invite like-minded people and grow organically.
Every forum I ever used prior to Reddit had a ban appeal process, as did most game servers. For a few games reading the ban appeals could be more fun than playing the actual game. This was usually moderators making executive decisions based on a user-submitted form, but it was better than nothing.
Speaking for myself I generally will unban if people are nice and express understanding for why they were banned.
First one:
In a programming sub, as there was over 10 years a rather known bug. Typical discussion goes off and using the bug as a example of issues that never get fixed in the language.
Short term sub banned for breaking the rules. The stated "broken rule" was one of those very broad one's where you can hit any discussion with. Appeal the ban, stating that my comments are based on facts. Pointed to the github, the 10 year long discussion. No answer beyond "you are perma banned for breaking the rules".
Got private contacted by one of the main developers of the language, as he noticed my banned status and was unable to get a answer from me.
We gone over the bug in PMs. Bug got assigned to somebody and fixed. Thanks for fixing that 10 year old bug.
That was my first experience with mod overreach. But that did not undo the ban for "being right".
Second one:
In a specific country sub, i noticed there was factual proven misinformation. Corrected the user in a lengthy post, with multiple links to news articles. Short term ban by a mod, for "misinformation".
Appealed the ban, got into a whole discussion with the sub mod. Told him that he is using his own opinion, not the facts. Stated multiple times my news sources from my post (not entertainment news but professional news), inc reuters.
Stated that he is not following the rules by using his person opinion as basis for the temp ban and asked for escalation of the ban review. Asked to show what rule i broke (never got a answer beyond his personal opinions).
Other mod came in, stated that i "attacked the mod" by asking for a escalating of the review, and by accusing the mod of not being neutral (i mean, using personal opinion vs official news websites = your not neutral).
Perma ban ... Kafka lol. As you can guess, never got a answer to what "misinformation" that i broke.
/Insert slap head emoji ...
What did the mods gain? Maybe that short dopamine hit for "winning" by banning somebody. Sounds more like losing if you need to ban based upon your opinion, and not the facts, but hey...
O, made new account, and back on sub. Never got banned again. Did i change my posting behavior. Nowp ... If i see misinformation, i come with receipts (links to actual reputable news articles).
Its like, what do you gain? Its just power tripping people that love to mod. There are good mods out there but a TON of them are just nasty dopamine junkies, that want to "win arguments" with bans.
HN has problems but moderation being arbitrary isn't really one of them.
They implemented a change recently where users can make their profiles private which seemed like a cool idea to prevent this sort of thing, but in practice it is used almost exclusively by bad actors. Some users suggested the change was made to facilitate government intelligence agencies running influence campaigns on the platform.
I learned a simply truth about social media. When you answer a person in a discussion, are you answering the person or the world?
When you are answering the person, and the person has seen your response by time or counter answer, there really is no need to keep your post alive beyond a few weeks.
By then the topic is already on page 10 and only of interest to google / bots / AI.
Is this a problem for the future? Not really ... if the answer is important like i want the world to keep seeing it, you keep it undeleted.
If you did a product review, keep it alive, but just answer people, or having discussions that have no relevants a year from now, just get rid of them.
But lets be honest, most of our answers are often discussions and not some deep zen state thinking exercises that everybody needs to see years from now.
The world has not gotten better and your faced with a dilemma. Reject social media totally and avoid all the mess of people using your past post history, bots and AI/LLMs eating your data non-stop, or potential profiling. Let alone if governments change...
Or use this trick ... there really is no perfect answer and you do what you feel is good for you.
As someone whose family comes from the more left wing Catholic culture, which is a thing, I sometimes am disappointed when Catholics are thoughtlessly lumped into right wing culture war topics. It feels like this assumption is particularly common in the US vs. other places.
Edit: this comment on such a politically touchy topic lasted almost 40 minutes before getting 2 downvotes, honestly I'm impressed it lasted almost an hour.
Of course as always, the downvote is a signal of communication, and without a reply, all communication I receive is that this is a sensitive topic. If there's anything factually wrong I'll be happy to change it. (And I would consider myself having spent ~~too much~~ enough time on reddit to know which comics are popular and/or get folks banned easily.)
Yes, they can and that's how it's set up. Each community makes their own rules and can choose who participates.
It's not Reddit. It's the sub that made the decision and I'm not sure how it would be possible for Reddit the company to deal with sub level rule complaints and appeals.
Leaving aside everything else wrong with that, that would be trivial to abuse, especially with the help of sockpuppetry but easily enough even without that.
If this guy had disclosed his conflict of interest, he would just have been an obsessed crank and even as a moderator, that's his right. But when he didn't, I'd say it was large-scale manipulation, and it's clearly in Reddit's interest to not allow this sort of thing (especially now that they're selling all their data to AI companies).
I'm not sure, as in this case it seems to rise to Defamation + Trade Libel/Commercial Disparagement. So it may go beyond being simply unethical.
It doesn't matter what you post, just the association with that sub is apparently enough.
If you're at the point where you have been vetted and allowed to post on r/Conservative, you've gone way past mere "association." This isn't like some board game forum where you can just create an account and start posting. r/Conservative (probably with good reason) has a long and very active vetting process before you're allowed to post there, and only posts that conform to their ideology stay up. So getting banned for participating is a little more than just "guilt by association."
If one is squatting on a valuable forum name, then the moderators should be themselves subject to a standard enforced by Reddit.
And Reddit bans are used by powermods to get rid of any rivals. They will pay to bot the report system so your account is instantly perma-banned by Reddit. And Reddit has the most aggressive system of all the social networks for detecting duplicate accounts, so you'll have a hard time ever using the site again.
Of course, most reputable forums have policies and rules but at the end of the day these do not mean much. Who are you going to complain to if you get unjustly banned - the Internet police?
You can always start your own blog/forum/subreddit and post whatever you like.
I don't disagree with any of this, but I'll note that in addition, it's also the most reliable place to get a general crowd-sourced opinion on the internet. There are specialist forums for specialist subjects, sure, but nowhere else delivers like Reddit does on a diverse set of topics.
EDIT: I don't know why I'm getting so many downvotes, nothing I said is controversial at all.
I think the problem is that people get their incorrect world views from Reddit.
There's a saying, attributed to Max Planck: "science advances one funeral at a time". Sure, there's facts. Avogadro's number is a specific fact and is incontrovertible. But how about gravity? I mean, 9.8 m/s² is it and that's also a specific fact, but then you start looking up into the heavens and what's this dark energy and now there's dark matter and okay so MOND's been disproved?
Facts also have framing. If you pay attention to the incidence of crimes on the nightly news, it feels like society is falling apart, but then you look at the bigger picture and real statistics and things aren't actually that bad?
In the sloppy real world of facts that are messier than 2+2=4, we don't have anything to go on other than what most people around us believe, and because there's only so much time in the day, as humans we emotionally believe whatever we want. There are some crazies who have spreadsheets output facts for them to bet on, and they make a lot of money off of that, but they're a minority.
"If I speak in the tongues of men or of angels, but do not have love, I am only a resounding gong or a clanging cymbal. If I have the gift of prophecy and can fathom all mysteries and all knowledge, and if I have a faith that can move mountains, but do not have love, I am nothing."
A person from the 1200s is not stupid for believing everything was made from four elements but a person from 2025 would be.
I personally found it off topic, the conversation was about using Reddit as a source of truth for product opinions/reviews and it’s unlikely that the absence of a right wing majority is relevant when purchasing a dishwasher.
This gives the appearance to people that hold positions that are out of touch with reality that the coherent narratives are an all-encompassing hegemonic echo chamber that covers the whole site. The incoherent conservative narratives fail to take root among a wider audience since they fall apart when scrutinized. The karma system om reddit's encourages this behavior among neutral subreddit to dunk on people when they say things that are nonsense.
So that's why you only see them being held in specific ideological echo chambers like /r/Conservative where you have mods that censor discussion that debunks or merely calls into doubt the narrative asserted by the moderation team.
Just because an opinion seems to be popular there does not nessisarially mean it won the "marketplace of ideas". It's more like the "warzone of powermods". I think a lot of social media sites go through a phase of controlling discussion to suit powerusers, but this comes at the cost of losing long-term social capital.
I mean we are in the second term of a trump presidency. The climate on reddit is very left wing but in the real world, people are voting right wing (or more likely not at all). Reddit itself is now an echo chamber, and r/Conservative is just the echo chamber within the echo chamber.
That's some impressive blindness. That's exactly why the OP is stating it's unreliable. It _was_ reliable. Now it's a minefield, because trust->money.
Just like Amazon 5 star reviews. They used to be good probably until about 2012-2015 (if you stretch it). Then it became weaponized because the trust was so high. Anything with strong 5 star reviews sold.
Of course, you can "figure out" if what you're reading is trustworthy, but to blanket state "the most reliable place" - days gone to yesteryear.
Ehhhhh I agree and yet also disagree (it's fun though).
Yes they were ruined by being promoted by algo changes, but do I blame google directly? For me, no.
It's exactly as we stated before, it's because it was so trustworthy. Individual people's personal experience with X or Y many times with good details. That earned a lot of strong backlinks, blogs, etc. The domain became authoritative especially on esoteric searches. Then algo changes came (remember pandas?) and pushed them even further. I mean that's the point of search systems right? Get you to trustworthy information that you're looking for.
Then the money grabbers showed up.
So it's just like Harvey Dent said - either you die a trusted niche community or live long enough to see yourself become weaponized for money. He was so smart, that Harvey Dent.
Why let reddit drag down the credibility of well everyone in their niche by association. Even if it’s only a tiny bit per year, that adds up over time.
Some in fact have but the majority? Probably laziness, but laziness is just misaligned incentive-goals.
Communities have very little incentive to de-reddit. It's actually a huge amount of work and they gain almost nothing directly.
Separately, I was thinking you know HNews is pretty immune to this problem because we don't have a central theme or something, right?
But no, that just means I can't see how I'm being monetized is all. Blind leading the blind.
Read about the whale trades and wash trades on Polymarket: https://news.ycombinator.com/item?id=41999743
I'm not convinced wash trading is a huge problem as it's mostly about generating fake volume. The particular linked example is bad too because Trump did end up winning the election.
An example is how volatile their markets are on Fed rate decisions; sometimes you see serious short-term disagreement or contrarianism between individual markets:
https://polymarket.com/event/how-many-fed-rate-cuts-in-2025
https://polymarket.com/event/fed-decision-in-october
https://polymarket.com/event/fed-decision-in-december
Just because reddit is reliable vs its peers != absolutely reliable.
Like Amazon, Yelp, Google any review system will become gamified for money. So just like those platforms every review you read you need to ask "who is the reviewer? do they review other things? how 'realistic' does it read? Are they pushing anything? Is the thing i'm reading affected by money? Were they given a product? were they given a discount/kickback for a review?" etc etc.
You cannot simply look at a review and say oh yeah that's a good review of someone who just wants to help others.
The whole reason this thread exists is exactly because of above. Someone weaponized the trust, your trust, of reddit to bring down a startup - and it worked.
You're replying to a comment where I said I agree with the statement "Reddit should not be considered an authoritative source"
You're trying to walk a line that says reddit not authoritative and yet reliable. In this specific context authoritative also comes to mean reliable. So we're at reddit is not reliable yet reliable?
I'm saying it can't be. The well has been poisoned and it's not safe to pray it didn't mix. That you need to treat reddit with the same skepticism lest you be taken for your money. Perhaps you don't agree, which is fair then we agree-disagree.
That's really not how superlative/comparative adjectives work
Great experience with one step and blown to bits with one small step in a different direction.
There's a variety of these marketing spambots on Reddit, and I'm sure like the toupee effect, there are more subtle ones that I'm not noticing. I think this is existential in the long run for Reddit as a platform, but maybe the owners/employees are happy to milk all the value out and walk away from the husk.
https://archive.ph/qpfED
Seems like a pretty incoherent conspiracy theory. What a weird thing to believe.
But it was actually a couple days apart; he stopped posting before she went to prison. And he actually posted to some private subs, and was involved in some DMs, after he stopped posting publicly and after she went to prison.
There's really very little evidence other than a vague coincidence of when he left Reddit and when she went to prison, and the name.
And, like, if she were posting anonymously, why would she use that name?
It's basically just completely incoherent. Like many conspiracy theories, they take a lot of other random data points, and if you sift through and cherry pick enough data points you can find others that taken out of context look like coincidences. But that's just because you're cherry picking between two large distributions of data.
These are absurdly strong claims. This isn't an incoherent theory... it's inconclusive, sure. Unprovable? Probably (difficult to imagine what would have to change to find out with certainty one way or the other).
i.e. it's almost impossible for to have been anybody else. The supposed "mod chats" are clearly fabrications met to cover it up.
This is a simply incoherent theory. There's no sense in it. You don't post "anonymously" under your own name.
This goes into far more detail on the individual claims from the original conspiracy theory: https://coagulopath.com/ghislaine-maxwell-does-not-have-a-se...
But it really doesn't take this much detail to realize that this conspiracy theory is incoherent, at a surface level it just makes no sense at all.
The entirety of the "evidence" is standard conspiracy stuff, of making vague generalizations, bad interpretations, cherry picking data, etc.
I can't believe people are this gullible.
When do normal people ever make sense? And she's not exactly normal, she pimped teenage girls to her boyfriend (? whatever he was ?). All usernames leak something about the person who chose them. They're trying to be clever, come up with the perfect joke or pop culture reference. Except for people who aren't that clever, and then it was the third grade class's pet hamster's name with their birthday tacked onto the end. When you say "but she wouldn't do a username based on her own identity"... you're seriously overthinking this. Don't you feel a little silly pretending that she was some supervillain genius who wouldn't ever make such a classic blunder?
>But it really doesn't take this much detail to realize that this conspiracy theory is incoherent
Incoherent in that dozens or hundreds of people all contributed to it in an unorganized fashion over a period of days/weeks on reddit? Sure, 100%. Incoherent as in it makes no sense and doesn't have a shred of plausibility? 0%
>The entirety of the "evidence" is standard conspiracy stuff,
This is just blatant lying at this point. Standard conspiracy stuff is that the Illuminati, working with the Rosicrucians and enslaved sasquatches are blackmailing the CIA to use their mind control satellites on the Spanish royalty in an attempt to foment nuclear war between Gibraltar and Cameroon.
The "this convicted felon fucked around on reddit when she wasn't busy being a degenerate pervert sex monster" isn't standard conspiracy stuff. It's run-of-the-mill no shit sherlock territory. And you're insulting for claiming otherwise.
I cringe inside every time I search for something, and the first autocomplete is "mysearchterm reddit"
YouTube is far worse and it isn’t even close.
All that hiding them on Reddit does is pissing other users off because it breaks establish site's norms and expectations.
I got e-mail blasted on my linked e-mail here for a user called u/Loughla on reddit (who has deleted their account now). It's not me. It was never me. But oooohhhh boy did they upset somebody in an anime subreddit.
In other words, angry people absolutely will go the extra mile just for some feeling of vindication or other nonsense.
Massive changes in posting history was a very good sign that an account was a farmed or stolen account.
Makes it a lot easier for reddit to deny their bot problem.
1. The singer D4vd is sole mod of his fan subdeddit and deletes every post about the the dead body recently found in the trunk of his Tesla:
https://www.tvfandomlounge.com/singer-d4vd-apparently-deleti...
2. Influencer Paige Lorenze is a mod of nycinfluencer snark and she prolifically deletes all unflattering threads and specifically all photos of her from before her numerous plastic surgeries:
https://www.reddit.com/r/nycinfluencersnarking/comments/1e63...
I have the impression that there’s a certain type of user that likes to be a gadfly in communities to devoted to not particularly relevant or famous personalities.
The criminal case is an open investigation and also has been in the news lately: https://www.yahoo.com/news/articles/details-emerge-homicide-...
My significant other follows influencers thus I heard about the Paige Lorenze controversy/lore.
I wouldn't say either of them is "not particularly relevant" as D4vd is super popular among GenZ on tiktok and has 30 million listeners and 4 million followers. Paige isn't as big but she is a well-known WAG dating some tennis bro and has a successful clothing brand that sells to the genZ crowd.
I agree with one or two of the characterizations but the majority I don't and there is a lot more to this story than it seems...
RE: INDUSTRY. Rithm School (their main competitor) shut down. Hack Reactor is down to single digit cohorts allegedly. Launch School is slowing down from 3 cohorts a year to 2. Numerous other bootcamps have shut down. Codesmith's decline is predominantly an industry problem.
RE: CODESMITH. For starters as an example, Codesmith's website, email, and entire AWS account was down for 3 weeks because they got locked out from not updating their credit card and then losing the root password and their 2-factor was a phone number. This is unacceptable.
Yet they market themselves as similar outcomes to elite grad schools and it's very reasonable to challenge them on their hyperbolic marketing.
Both sides of the story need to be heard before making a judgement.
I recommended a bunch of people go to Codesmith until February 2024, when the first signs of collapsed started.
Even though you have counter claims, you moderating the forum for your industry is problematic. You also seem keen to chime in about a competitor when you should be impartial and allow users to discuss their experiences alone.
Yes there are two sides to every story, but in no universe should you be the mod of that subreddit.
At best, if everything you say is true, what you are doing is akin to proudly volunteering as a firefighter so that you can slow-walk the response if a fire is ever reported at the NXIVM HQ. Your crusade against NXIVM may be righteous, and it might even be universally considered a net good if its HQ were to burn down, but it would still raise a lot of eyebrows if it came out that you intended to use your position in that fashion.
edit: To be clear, I sympathise with your claim that you are being subjected to a one-sided hit, and am starting to feel uneasy with the dogpiling atmosphere that is building in this subthread. However, it is understandable to me why this is happening - fundamentally, Reddit has become a town square that is really not engineered correctly to be one. In a town square, people want to choose their leaders, but subreddits are by design "storefronts", in which leaders (moderators) choose their people. This tension is resolved by a very unpleasant jerry-rigged substitute for democratic control: the one way you can "vote out" a moderator (who has the backing or indifference of everyone above him) is to apply psychological pressure, or other harm (such as the reputational damage your company is no doubt taking as we speak), until they crack and resign. This is sort of democratic because larger fractions of the "electorate" can achieve it more easily, but even turning up to such a "vote" that you ultimately lose entails social violence.
It doesn't seem like you are willing to resign, nor to put your moderator status up for a community vote (if that could even be made fair, after you presumably banned a lot of would-be voters, and conversely could accuse the other side of botting/brigading). What other options do those who do not want the town square to be moderated by you have?
> What other options do those who do not want the town square to be moderated by you have?
Start and visit a new subreddit. This is an important bit that gets covered up by metaphors like "landed gentry" and "peasants". Don't like it? Vote with your digital feet. It doesn't come with any of the baggage and complication that an equivalent real life move would have. Just stop going there and go somewhere else. Yes it would be nice if folks were awesome and tried to be awesome. The reality is they aren't and subreddits are property owned by the mods. Luckily, you don't have to be there.
https://techcrunch.com/2021/04/08/software-engineer-training...
>> I'm the co-founder of an interview prep mentorship platform [...] my company's services so there is a small amount of overlap on the most experienced end of Codesmith and the least experienced end of Formation. <<
https://www.reddit.com/r/codingbootcamp/comments/18cpq98/ana...
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