Even worse, I think the site has been penalized as a result. The redirect was put into place one month ago today. My traffic from Google is down 50%. That could be a seasonal variation or could be a penalty.
I get the feeling it may be a penalty because my index page does not rank when I search for my domain name. If I type in “mysite.com” into Google, it returns my Myspace profile for promoting the site, Myspace pages where I have made comments, other web pages that have mentioned my domain name, and just a few secondary pages from my site–but not the main page.
It has been a recent development (well, recent being over 12 months ago). I has been pretty well covered in the blogs and even confirmed by Google officially and unofficially…sorry that it came as a shock to you.
I also find it highly coincidental that right after Google dropped its traffic to Site2 in July I got a message offering $100 in free Adwords advertising if I sign up. Tank traffic, get people to pay you for traffic at $0.10 per click. If that isn’t a conspiracy, I don’t know what is.