I honestly think that you should include it. And rather than tarnish your application, I'd like to offer that it will bring depth your profile and interest to your story. I like to use the movie analogy with the goal of an application. You want to make your application a movie somewhere you want to go see. Rather than presenting perfection and flawlessness, which is frankly kind of boring, you want to elicit an emotional response from the reader. And I think that is often accomplished by sharing vulnerabilities and struggles. Think about movies that you've found compelling. Is this characters life going perfectly...they are perfect, the end?
I realize you might struggle to see his point of view but I do think it's equally valid. Own this experience. Business Schools like to bring people on who have had exposure to adversity, who has traversed through adverse situations. And I think moving to a new city and then getting fired is one of those.
Just as a side note, you did nothing wrong and these people should burn in hell. Sounds to me like they wanted to fill the job but then they found someone they liked better. Please hold your head high throughout the recruitment process, and the application process. I really don't give a crap how prestigious and yada yada they are, their actions were not prestigious. I used to work for the very prestigious Wells Fargo
if you know what I mean.
So it is not your fault and I think you should just integrate this into your overall experience of life and accept it, rather than investing lots of energy into trying to push it away and hide it. Like trying to keep a beach ball underwater. I'm someone who believes in energy and I don't think it's very wise to invest negative energy into something you want a positive result from like business school applications. I just think it's very detrimental to going into this process feeling less than honest or being worried about something being exposed. You want to put good energy into this. This is very very important. Otherwise you might feel like an imposter or be worried about being exposed to some point, and that is just too much stress, and not the place you want to live in energetically.
Farrell Dyan Hehn, MBA
Admissions Consultant & Verbal Strategist MBAPrepCoach.com