Why can prior achievement become a liability after wrongdoing? This conceptual article integrates research on tall-poppy effects, social comparison, schadenfreude, moral outrage, public shaming, news values, and criminal-record stigma into a theory of the Status-Punishment Paradox. Status ordinarily increases social valuation, yet after salient transgression it can increase the narrative, emotional, and reputational value of a person’s fall. The theory identifies three linked mechanisms: a status-contradiction premium generated by comparison, expectancy violation, and irony; moral legitimation through which outrage can authorize humiliative participation; and digital persistence through which searchable news and platform architectures convert episodic condemnation into durable collateral punishment. A formal model derives a sign-reversal threshold at which the marginal social value of status becomes negative. The article also introduces the Rehabilitation Hypocrisy Gap, the difference between abstract support for second chances and concrete willingness to hire, sponsor, or associate with a named and searchable person. Four preregisterable studies are proposed using matched media-comment data, factorial experiments, employer conjoint designs, and longitudinal attention-decay analysis. Singapore is treated as a strategically revealing, not uniquely punitive, context. The article concludes with a Right-to-Completion principle for proportionate, domain-relevant, evidence-sensitive, and temporally bounded extra-legal sanctions. ( direct link )