If you're still confused, or if anyone else wishes to read up on this topic, there are several threads, including a good one on this site. But here you go:
http://forums.wowace.com/showthread.php?t=14343
/off-topic This thread isn't about wowace's history
edit: though it does show how the abuse of an updater client can lead to the potential downfall of a website and community that its members loved.