New footage has emerged of racegoers blasting Michael Schneider, the man responsible for spooking Melbourne Cup horse Araldo with a large flag, leading to the stallion’s eventual death.

Araldo was euthanised after coming seventh in the Melbourne Cup when he was startled by the flag on the way back to the mounting yard, getting his leg caught in a fence and breaking it.

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Mobile phone footage obtained by the Seven Network shows patrons yelling at Mr Schneider and his partner, who waved the giant Australian flag in the Melbourne Cup crowd.

“A horse just got hurt and you thought it was funny,” an unidentified man said.

Mr Schneider, a horse owner, defended himself, saying he held the flag away from the horses, but the man appeared unsatisfied with his response.

“You go tell the owners of Araldo who’ve got a million dollar horse that’s going to the vet now, saving its life, because of you. But you think it’s funny,” the man said.

“We’re here to celebrate,” Mr Schneider said.

“You laughed at security,” the other man responded.

In a statement, Mr Schneider said he was “deeply shaken” by the outcome of the incident.

“…as owners ourselves, we are shattered at the events of yesterday… (and) regretting what unfolded and are deeply shaken,” he said.