The real name of Chaos Kid was James Deal. He was an old friend and fellow rapper of iconic rapper Eminem; known as M&M back then. They both were a part of the underground rap group Soul Intent in their teenage. They worked together and produced a few-lot tracks. Soul Intent was active from 1988 to 1995. [This was Eminem's first group, even before D12).
Most probably, They promised each other that if one of them becomes famous someday, he'll help the other. Later, Eminem became but he didn't keep his promise. He did help his buddies like Royce da 5'9" and D12 friends but sadly left out James. You see, only few people ever knew about Soul Intent. No one knew that Eminem left a good old friend behind; even Eminem never talked about James.
James two letters to Eminem, they were depressing. Everyone who read the letters said they were "Interesting Reads". The letters seemed desperate and sad. In of them he said he's disappointed on Eminem for not helping him although they promised that if one of them blew up he'll reach out his hand to the other one.
At first it probably was the pressure from the record companies and career for which Eminem couldn't get in touch with his buddy. Fame became imprisonment.
Eminem had the tendency of leaving out James. Why? The Source created a big mess. Eminem had a beef with Benzino, the Co-Owner of The Source. Chaos Kid may have been the one to leak an early song of Eminem from his teenage to The Source out of jealousy or financial gain. Long story short; they made it looked like James was paid to leak some Eminem tapes and take part in an interview of The Source where he talked about Eminem. James actual intention was to get the attention of Eminem though The Source completely represented James like an enemy to Eminem. And they also made the lie look stronger as James expressed some frustrations towards Eminem, of course- for leaving him out.
And in October 5 of 2011: James Deal, so-called Chaos Kid committed suicide and ended his life once and for all. Eminem didn't even attended his funeral (maybe he didn't even know). In Hip Hop Shelter Forum, Chaos Kid said that they had a little contact. But Eminem wasn't every communicating; no one knows why.
It's all very, very sad...think about poor James, Chaos Kid (more like the Forgotten Kid). We may never know about the true story unless Eminem reveals it.
[Rest in peace, James Deal]
I found this video on YouTube that will totally clarify the whole story: https://youtu.be/w7IZJ89lFEc