Following former Googler Hunter Walk posting a tweet expressing his surprise that 40,000 developers used FourSquare's API, Rabois posted a reply saying, "same number of real users."
It took 20 minutes before FourSquare CEO Dennis Crowley came to the company's defence tweeting, "Keep hating... and while you're doing so Foursquare will keep becoming the location layer for the Internet."
Rabois responded, "Great use of jargon. Maybe Hail Mary Bebo-style acquisition will bail you out."
Reports that Foursquare have faced issues with growth and revenue over the past year have circulated with the company apparently seeking more funding.
Crowley's last tweet said, "Or maybe we'll keep doing what we're doing... looking fwd to making your #HatersClub tweets look foolish."
Many other Twitter users including developer Sriram Krishnan and Chairman of Publish2 all contributed their opinions.
Rabois resigned from his post at electronic payment service Square earlier this year after the threat of a lawsuit accusing him of sexually harassing a Square employee arose. He has since moved on to Kholsa Venutres, a venture capital firm.
To view the whole stream of tweets, click here.
Source: Venture Beat