Snapnames in trouble?

The statement is a little cryptic and the companies involved are not named
but it sounds like Snapnames and/or one or more of their competitors are in

Looks like some registrar allowed some domain-backordering service to
co-locate servers on the registrar’s network, giving the co-located servers
direct access to the registry and allowing them to register (and delete)
domains without going through the registrar’s system at all (in fact, the
registrar had no knowledge or record of what was registered or deleted)