Move on. Apply for more positions at other companies. The more you do it,
the more you'll find that references, including bad references, are not
taken much notice of by a surprisingly large number of potential
employers.

If they really really push you hard for a reference which you can't or
aren't willing to provide, I'd be asking why, and if you really want to
deal with such an inconsiderate recruiter/employer.

Two more of my cents worth :)

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