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You made the absolute right decision, and anybody that is saying otherwise hasn't been in your position. The good of the many over the good of the one; that's hosting.

The operational awareness in this comment makes me wish everybody would print it out as an example of a tough call to make in defense of your brand.

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Throwing the victim under the bus is standard procedure for third rate hosters. Doing it without notice is even worse.

Only if the brand is "we're el cheapo hosting cowboys" it's the right decision.

You ignore the fact the this customer wasn't paying for the hosting. He only costs them money, a lot of time (through dealing with DMCAs, DDoSs and more).

At this point they had to make a choice and they chose for their paying customers and drop pastie.org

This was obviously a difficult decision for Rails Machine. I put food on the table from an application we've hosted at Rails Machine for several years: they are simply a fantastic team to work with. I can't imagine using a different Rails hosting provider.

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