I just hope chadz didn't cut off his own nose to spite his face. Saying "you either sack us all or none of us" is the sort of thing I can imagine him saying. I really can't imagine Warlock Wireless being so daft to purge them all, especially chadz. I still can't really believe it.
Why? Quite a logical step from the Product Owner side, if he blames development for the current failed state of the project.
But speaking about speculation around:
considering that probably all DC left the development - Pogosan tells that only one PM and 2 coders are there atm - this is looks like demonstrative protest self-resignation. So for me it looks like: product owner/investor looks at all those ratings and concurrent players count decreasing became unsatisfied and at one time said, that DC should do that and that, and change that one, and remove that one from the game at all. chadzs as creator of the game did not liked the changes, but since he's "not the boss anymore" he couldn't do much here. And develop your own game by yourself in the direction you do not like is pretty dumb. So resignation is the only way, and since all the team leaves it looks like they are leaving because new bosses do not left them a possibility to do what they wants to do.
So in summary - Product Owner and Dev Team has so different point of view on the game, that in made impossible for them to work on it together, so one of the side left the project