Player Mute. Ignore Mikey. Handle your bidness on Christmas. Done.
I have been in server a couple times when EVERYONE is having fun and talking a lot, little spam here, little there, but everyone is ok and laughing, only to see you tell everyone to be quite and ruin peoples fun.
You are a good admin, I will not doubt that, just because you may not want to hear it yourself, you should not throw up your admin powers to "mute" everyone. That is what the player list mute is for. Let people have their fun, you wont hear it. When no one at all is bitching and everyone is in in good humor, please don't ruin it for everyone.
After all, this is a game, people play to relax, talk shit, and have fun.
Good job on administrating the real problem though.
Edit: Also, I see NO abuse, just an argument between two players. Disrespect, possibly a little, but understandable.