Palmer Luckey, the millionaire brain behind Facebook’s $2 billion
bet on virtual reality, is in a bad place.

In one week, he’s gone from being the enigmatic, shockingly young
head of a company that Facebook acquired for billions of dollars
to being the “Wizard of Oz”-type man behind the curtain who’s
financing an alt-right political group with roots in a white
supremacist subreddit.

How does the guy with the VR goggles on the cover of Time
magazine go from beloved to suspicious in one step?

palmer luckey time magazine coverTime

What happened to Palmer Luckey?

Luckey’s latest problems started last Friday, September 22, with

a report from The Daily Beast
. In the report, Luckey admitted
to reporters Gideon Resnick and Ben Collins that he had given
$10,000 to a group named Nimble America.

The group is focused on bringing politically charged memes from
the internet into reality. What type of memes? This kind:

Nimble America anti-Hillary Clinton adNimble

Nimble America is against Democratic presidential candidate
Hillary Clinton, and its plan to combat her and elect Republican
presidential candidate Donald Trump is to use internet memes in
real life.

As a member of Nimble America said on Reddit: “We’ve proven that
shitposting is powerful and meme magic is real.”

So what? you might be asking. This guy wants to
support whoever he wants for president.
Absolutely. Agreed,

donald trump debate
Republican presidential
nominee Donald Trump.

Win McNamee/Getty

The issue isn’t whom Luckey supports for president, but the
origins of the group Nimble America: a subreddit called
that’s directly associated with the growing
alt-right movement. And the
alt-right movement is associated
with white nationalism,
anti-Semitism, conspiracy theorists, and Gamergate supporters,
for starters.

On top of that, The Daily Beast reported that Luckey said he used
the name NimbleRichMan on Reddit. NimbleRichMan posted stuff like
this, which has since been deleted:

“We know Hillary Clinton is corrupt, a warmonger, a
freedom-stripper. Not the good kind you see dancing in bikinis on
Independence Day, the bad kind that strips freedom from citizens
and grants it to donors. Hillary Rodham Clinton is not just
bought and paid for. Everyone around her is, too. The elite of
the country know it. They don’t care. They know she is the
candidate that will do what they want.”

Luckey now denies having written that.

This is from the
apology posted on Luckey’s Facebook page
late on Friday, the
same day that The Daily Beast article was published:

“I did not write the ‘NimbleRichMan’ posts, nor did I delete the

But Luckey initially
confirmed to The Daily Beast
emails that are publicly available
) that he was the
man in charge of the NimbleRichMan account.

Vice clarified with The Daily Beast that Luckey did at one point
say he wrote Reddit posts as NimbleRichMan, and Vice
published images of the emails
between Resnick and Luckey.

Collins even posted images on Twitter of one such exchange with

There’s a third, very narrow possibility: Perhaps both of the
writers of The Daily Beast piece are lying, fabricating emails
between themselves and Luckey, and then sharing those
fabrications with Vice.

It’s also extremely unlikely, and Luckey hasn’t made that claim.

In his apology, Luckey also said:

“I contributed $10,000 to Nimble America because I thought the
organization had fresh ideas on how to communicate with young
voters through the use of several billboards. I am a Libertarian
who has publicly supported Ron Paul and Gary Johnson in the past,
and I plan on voting for Gary in this election as well.”

That stands in direct contrast to the views espoused by
NimbleRichMan on Reddit. Again, Luckey is, of course, free to
support whichever presidential candidate he wants.

But if he is indeed NimbleRichMan, he’s seemingly lying about his
views, and that’s upsetting fans.

And this is where the issue of Luckey donating a relatively small
sum of his millions to a political group becomes a liability for
his employer, Facebook.

mark zuckerberg oculus riftFacebook/Tech Insider

What’s the problem?

The product most closely associated with Luckey is the Oculus
Rift, pictured above on Facebook founder and CEO Mark Zuckerberg.
And the lifeblood of the Rift is twofold: people buying the
headset (consumers) and people making stuff for the headset (game
developers, mostly).

It’s an expensive headset ($600) that requires an expensive
computer to power it. The headset’s high price combined with a
high barrier to entry make the Rift a hard sell for a lot of

So the kind of person buying a Rift right now is considered an
“early adopter.” That’s the kind of person who knows who Luckey
is. The kind of person who posts in the Oculus subreddit.

A person like the Reddit user spiezer,
who wrote on September 24

“If we set aside our individual political dispositions and view
the situation as it is, it’s pretty clear that this is pretty
messy. It’s not close to over and the chaos brewing in the VR and
tech community will not end until there is better closure.

“Palmer, believe it or not, is one of the main faces of Oculus.
This is not a good showing for the company. Especially in the
eyes of the general public, let alone the enthusiasts.

“At the end of the day, this isn’t about his supporting Trump.
It’s about his way of doing so. He’s a public figure. This isn’t
a situation you can just ignore or regard as having a minute
amount of importance. He’s a VR visionary and people looked up to

The big problem is that Luckey quite possibly lied directly to
this important community.

palmer luckey

And fans aren’t the only ones who are upset.

What are developers saying?

The bigger problem for Luckey’s company, Oculus VR, which
Facebook owns, is the potential fallout from the news.

As famed indie developer Rami Ismail of Vlambeer put it:

Ismail’s joking, but the point he’s making is dead-on: The HTC
Vive, one of the Rift’s main competitors, is already competing
for developers. It wouldn’t be so hard for those developers to
focus on the Vive or Sony’s PlayStation VR (which launches this
October) over Facebook’s Rift.

And some developers are publicly stating that they’ll do as much,
like “SuperHyperCube” development studio Polytron:

interviews with BuzzFeed News
, a handful of Facebook’s Launch
Pad fellows, who create VR projects based on Oculus Rift,
expressed a variety of concerns.

“The mood is surprise, shock, dismay, and disappointment,” one
said. “A number of people are creating documentaries to address
social issues, and they are questioning whether Oculus is the
right platform.”

What happens next?

Maybe nothing!

Luckey continues to be employed by Facebook — a rep confirmed to
Business Insider on September 23 — and he’s said nothing publicly
since issuing his apology. Facebook declined to comment
otherwise, pointing to Luckey’s apology as the official
statement. Luckey didn’t respond to repeated requests for

His colleagues at Oculus, however, are saying some things. Oculus
VR CEO Brendan Iribe, for instance, said this on
his public Facebook account

“I want to respond to the recent press stories involving Palmer.
I know that Palmer is deeply sorry for the impact this situation
is having on the company, our partners and the industry.

“Everyone at Oculus is free to support the issues or causes that
matter to them, whether or not we agree with those views. It is
important to remember that Palmer acted independently in a
personal capacity, and was in no way representing the company.”

The head content officer at Oculus, Jason Rubin, took to Twitter.

“I wanted to give @PalmerLuckey a chance to respond before I
posted. … Knowing Palmer, I take him at his word,” he
wrote on September 23
. “30 years in the game business, I
would not work in a place that I thought condoned or spread hate.
Nor would I remain silent if I saw it. I believe games and VR
have the potential to bring people together. My view is
unwavering. We can make the world a better place.”

It’s still unclear if any of this will have a material effect on
Facebook’s VR business, or if Luckey will remain an employee.
We’ll presumably find out more at Oculus VR’s annual Oculus
Connect event, which takes place October 5-7 in California.