How to deal with these type of people?

I know you’ve heard this before but it’s true violence really doesn’t solve anything. By what you wrote about this “big hot-shot” though it sounds like he is a really insecure guy. Actually a lot of people you see that are arrogant, treat others inferior because they feel superior, and especially talk about others are just insecure with themselves. He needs attention so he acts the way he does because he’s receiving it [you showing anger towards him is giving him more power because you’re showing you care what he thinks so he’s getting exactly what he wanted]. Instead of getting angry at him you should actually feel sorry for him because he feels so bad inside that he feels the urge to pick on others he believes are weaker to him. Unfortunately with our society, there are some people that fall into this category, those jock and cheerleader stereotypes and what not. The best thing to do is to not pay attention to him and have others do the same and watch how defenseless he becomes when he loses the attention for being a jerk he’ll start doing the opposite to get the attention he needs and hopefully he’ll start acting nice.