They're paranoid because it's a real thing. I live in an "at will" state where you can be terminated at any time without reason...unless you're a woman, minority, or other protected class. We've only fired two women in the last ten years and both had us wrapped up in lawsuits within a month of their termination, baseless accusations that could've ruined lives if our HR department hadn't been proactive in documenting all the incidents that led to their termination. Companies with public exposure are forced to settle just to keep the court cases from costing more due to bad publicity than a suit would require. A man can get fired just to save face. If that an was innocent, as is usually the case, then his departure leaves a dark cloud of paranoia over those that remain.