The all-mod chat on the left, and the Ghetto Chat on the right.
The Shadow Chat, also known as "Ghetto Chat", "Derp Chat", "Little Pooyoo Chat", "District 9 Chat" or "Identity Crisis Chat" is a segment of the TwitchTV chat filled exclusively with viewers who haven't joined the Turbo Club. It is less moderated than the Turbochat, though after its first show, it has seen a significant increase in moderators.
Created during the fourth segment of the Heavy Rain playthrough, it was born when Fraser decided that the non-Turbo chat was giving away too many spoilers and was generally out of control, leading him to segregate the chatrooms into Turbo and non-Turbo.
State of the AWESOME! Address!
Fraser explains his decision to make the show chat Turbo-only
While the all-Turbo chat could be seen on screen, the non-Turbo chat became angry and rebellious; there were originally no mods to police it, and thus people began using all-caps on posts. The name was coined when remaining mod Kshade mentioned the non-Turbos on the Turbo chat, where it was christened the Ghetto Chat by users.
Fraser has said on Youtube and on the show itself that he regretted removing the show's interactive element, but that it was a necessary move due to the show's ever-expanding and unmanageable fanbase. The large audience and near-constant comments have made it impossible to mod even with slow mode on.
In April 2012, a new IRC chat was adopted to replace the mod-only twitch chat on the show. This has rendered the entire twitch chat into the new shadow chat.