Hmmm. See, if Vigillant still had credibility, I might have thought welk, that's strange, I don't recall this incident, but it probably happened. Since Vigilant no longer has any credibility, I feel safe in assuming this is Vigilant either totally making shit up, or totally misrepresenting what I seem to recall was a spat between Wikinewsies over the usual thing that annoys Jimmy, people letting their passion spill over into assholery. Perhaps because he wouldn't help them persuade Wikipedia to stop stealing their market, by routinely violating WP:NOTNEWS. This a long way from wanting Wikinews shut down, which has, if I recall, only ever proposed by Wikipedians.Apparently Jimbo hates, hates, hates wikinews and tried to get it shut down at one point.
I mean, Jimmy trying to get an WMF project it down? That's explosive. That's something you'd write a blog post about, no?
As anyone who is selective about their source of criticism, they'd know Jimmy chose to completely go outside the WMF universe to create a crowd sourced news site, because he knew Wikipedia has basically killed Wikinews at birth, and wouldn't get behind it even if Jimmy somehow relaunched it, but more importantly he knew he couldn't integrate serious journalism, which necessarily requires taking proactive responsibility for what you publish, into the Wikipedia model, where all the responsibility is transferred to the reader.