There are two conflicting opinions regarding negative feedback from supervisors in the current literature: that it motivates subordinates' proactive behavior, and that it discourages proactive behavior. This demonstrates the theoretical confusion over the exact nature of the relationship between negative feedback and proactive behavior. To clarify this confusion, this study investigates the mediating and moderating processes underlying the linkage between negative feedback and proactive behavior based on motivated information process theory. Using three-wave and multi-source data among 332 Chinese employees, our results show that regulatory focus moderates the indirect effects of negative feedback on proactive behavior through perceived insider status, such that the effect is stronger among employees with a higher prevention focus, whereas the effect is weaker in employees with a higher promotion focus. We also discuss meaningful theoretical and practical implications of this research.