Two North Otago men were yesterday accused of a "hate crime" for allegedly kidnapping two men before ordering them out of town.

The two accused, a 41-year-old from Oamaru and 40-year-old from Hampden, incorrectly believed they were gay, police said.

Hampden police Senior Constable Darrin Low told Dunedin District Court yesterday that one man who had been detained said he had "never known fear like it".

The incident started about 7.30pm on Thursday night when the accused were invited into a Moeraki house where others had gathered.

After a period of time, others left because they felt uncomfortable with what was happening.

The victim was eventually left alone with the two visitors, but went to bed.

Later, the door to his bedroom was broken open by the two visitors, who allegedly threw him out of bed, pushed him against a wall and ordered him to get out of town.

About midnight, the two men visited a second Moeraki house and were invited in, whereupon a similar incident took place with a second victim.

He was made to pack some of his belongings and was allegedly subject to a verbal and psychological attack, with the two men using "American military-style tactics you see on TV".

"They made life hell for the victim and allegedly threatened him with grievous bodily harm if he did not leave town," Mr Low said.

After about 30 to 40 minutes of alleged abuse, the victim was so scared he packed his gear, got into his car and left.

The two men then returned to the first house where the first victim was in his bedroom. Again they threw him out of bed and told him to leave.

Both men were arrested about 7.30pm on Friday night. Mr Low said both victims only knew each other through work and were not gay.

The accused were remanded in custody when they appeared in the Dunedin District Court yesterday charged with kidnapping and will appear again on Thursday.