On June 28, 2010, Kobayashi announced he would not compete in the Nathan's Fourth of July Hot Dog Eating Competition reportedly due to a labor impasse with Major League Eating over the ability to compete in contests not sanctioned by MLE.
On July 4, 2010, Kobayashi was in attendance at the Nathan's International Hot Dog Eating Contest, watching from the crowd. Wearing a black T-shirt that read "Free Kobi", Kobayashi mingled with the crowd, standing inside a police-barricaded pen just under the stage. After the competition ended, he slipped up the stage stairs and crashed the stage. Although he was initially ushered by security officers up to the stage, one security officer (thought to have been requested by George Shea), quickly ushered him offstage as he resisted vehemently, hanging on to the barricades and fences before being taken into custody. Though some witnesses reported that Kobayashi was attempting to congratulate the winner, Joey Chestnut, co-host and Major League Eating President Richard Shea, stated that "[Kobayashi] tried to jump on stage during the awards ceremony to disrupt it." With the crowd chanting, "Free Kobi!" and "Let him eat! Let him eat!, police handcuffed him. He was charged with resisting arrest, trespassing and obstructing governmental administration and spent the rest of the 4th of July in jail awaiting an appearance in Brooklyn Criminal Court.
Kobayashi's interpreter and publicist, Maggie James said he had originally gone in hopes to cheer on his fellow competitive eaters, but after arriving and the chanting from the fans, he was swooped onto the stage from mere excitement. She said "There's a contract dispute, they weren't giving him his freedom, it was unfair"
Kobayashi told reporters he had a sandwich and a glass of milk while being held. "I am very hungry," he said. "I wish there were hot dogs in jail."
On August 5, 2010 all charges against Kobayashi were dismissed by a judge in Brooklyn. Nathans removed Kobayashi's name from their record sign in 2011.
