Netvibes Technical Account Manager interview questions

Applied online. Was contacted via email for a phone interview. Interviewer said I was a perfect fit and was forwarding me on to the hiring manager. Asked where I wanted to be located; San Francisco or NYC. I selected SF. Didn't hear back for some time. When I followed up, was told I was no longer being considered because I expressed an interest in living in San Francisco not NYC. I said I could very easily work out of NYC. And that I actually lived 40 minutes from the city. They said I had to live in Manhattan proper and would not consider me because I did not love there now.......weird