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A BostInno article this morning reported local payment processing start-up LevelUp may be checking out, but the company’s founder and chief ninja, Seth Priebatsch, is fighting back publicly.

The outspoken founder, who has earned a nice guy reputation, noted in a series of tweets that the reduced headcount was largely due to a batch of interns and contractors leaving, and said the company is not “running out of cash.”

BostInno’s Walter Frick wrote that while the company raised $21 million recently in several rounds, shifting strategies have drained those reserves and the company is looking for another round “now” before its cash reserves run out.

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Priebatsch pushed back on Twitter in an effort to, in his words, “de-sensationalize” the story.

The Hive’s The Innovators ran a look inside LevelUp recently, and I profiled Priebatsch recounting the thinking behind LevelUp’s strategic shifts at SXSW. Here’s the video of the former:

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