edit: accidentally removed your reputations (did not see Shadow's post). feel free to add them again. same posts, same reason.
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Direct interaction through flaming, therefore de-reputation is valid. It is in his right to de-rep you, as it is in yours. Thread deletions have nothing to do with reputation disputes. You go to staff disputes for that. Deletion was valid though FYI.
Also know flaming can get you banned btw. Consider this a warning for both of you.