How do you go from this story to "ego problem"? It sounds like they have other problems - but doesn't sound like ego is one of them, at least from the story.

This is HN. I'd wager a good portion of us have had an experience with Stripes hiring.

They simply have a lot more demand of engineers than they have supply of jobs so it's logical for them to not care about individuals.

It is logical now, not logical for the long term. This applies to interpersonal relationships also -- things that are logical when you're at the top might be logical in the long term.

I've had very senior people come back years later asking me for references or an "in" at another company. You cant do that later if you abused your privilege back when you could.

Not really. Seeming like a sitty place makes recruiting harder.