The disavow tool is ok for a handful of links but if your competitor is crazy it isn't possible to disavow 500 links. It happened to me on another business I run (never done any SEO for it) but I reported their own site for using SEO software, which is ironic as I now use SER But they demoted the competitor site, not sure if that was because of my report, and my rankings recovered.
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Or you can use the disavow tool if you feel so inclined.
It was take a lot of links to kill a site with neg seo
On another forum one guy has been monitoring a site for how they got to page one.
The guy has been building over 30k confirmed links a day with a single anchor text
Mind sharing the url to the thread?
So its possible :-(
http://www.blackhatworld.com/blackhat-seo/black-hat-seo/504150-testing-scrapebox-100k-day-blasts-twist-2.html#post4931788