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Update.
I told him to go ahead and report my site if he wanted. His reply:
"You win this time... hah"
The whole thing was a bluff on his part. I imagine that's the end of the drama. Dumb thing to do. I took down his link (from our initial link trade) and a couple of other people in the niche did too. If he was friendly he could have gotten more backlinks from highly relevant sites and likely some tips about how to move forward from people in the niche. Now he's alone.
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