Zen, there are LAWS that prevent a bad reference from being put out there, people have sued companies for bad references and WON...it is not very likely that this is what occurred...

I work for the YMCA school aged child care, we believe the school aged kids are under rules all day and our job before and after school is to PLAY GAMES WITH THE KIDS....ahhh, how I love my job! Is there a YMCA near you where you could apply, too?