There is obviously some legit cred here, and it's a definite downgrade - but it's not being sent to the woods either. G
Given that 'nobody else cares at all, whatsoever' - that adds context to this which we should include in our understanding. Nobody is missing grant money, or getting a stain on their resume, not getting a job, publicly dragged, meaning the slight is ultimately very personal.
There is a legit grievance here, but it's overstated.
Most gripes have a kernel of truth, the issue is to match up the size of the truth, with the size of the kernel.