A Business Insider story this morning reported that RNC chairman Reince Priebus denounced the idea of “self-deportation” as a solution to illegal immigration as “racist.”

But that story was completely false, based on the tape of Priebus’ actual remarks.

Priebus said “hurts us,” NOT “racist.”

Business Insider ran a correction of the story after several other outlets used the report for their own stories.

“An original version of this story said that Reince Priebus referred to Mitt Romney’s comments as ‘racist.’ He said it ‘hurts us.’” read a note from a Business Insider editor on the original blog post. “Business Insider regrets the error.”

Politics Editor Josh Barro told Politico that the mistake was "just a mistranscription of an audio clip" and that an RNC staffer raised the issue with reporter Brett LoGiuarto.

Here is the full quote:

I don’t know about a mistake, but I would just say some of those issues are very candidate-focused. I would just say using the word “self deportation”…I mean, that’s a horrific comment to make. Its not something that has anything to do with our party. Someone who makes those comments, obviously it hurts us. So I don’t think that’s a big deal. But I think most importantly, building genuine, authentic relationships take time…

Listen to the original tape of Preibus saying “hurts us” below.

The web is even more tangled, thanks to a report from Legal Insurrection blogger .

According to Jacobson, an RNC spokesman actually confirmed Reince's "racist" quote before checking it. He has posted the text of the exchanged email here.

Update: The Business insider reporter who mistakenly reported the comment apologized for his mistake on Twitter.