Cliff's Notes: The Absolute Poker cheaters are part of an inside job - either a rogue employee (bad apple) or rogue company (bad orchard).
Long Version:
1) During a tournament played by cheater 'Potripper,' the person who ended up coming second ("Marco") thought he was cheated. He emailed Absolute, and they sent him a hand history file - an XLS file.
2) Marco opened up this file, it seemed all gibberish to him, and he didn't think anything of it.
3) First Absolute Poker scandal blow up - PT screenshots, etc. Graphical representation here:
http://www.absolutepokercheats.com/vpipvbb.jpg
4) Fortnight passes
5) In passing discussion, Marco mentions he has this file. He shares it with a few people, including N 80 50 24(pokerdb.com maintainer, maker of The Poker Film, part owner of Bluff Media) who analyses what is in this file
6) Nat (N 80 50 24) & 2p2 poster Snagglepuss discover that this file is a complete hand history for the tournament - showing every table, and all hole cards of every player.
Hand histories here:
http://forumserver.twoplustwo.com/showfl...e=0&fpart=1
View Video here (free registration required)
7) Big excitement over #6
8) In further analysis, Nat + Snagglepuss discovers that this file contains IP addresses and user details (including email addresses) of people observing the table
9) In #8, they discover user #363 is observing PotRipper's table the whole time
10) At the start of the tournament, for the two hands that user #363 is
not observing the table, Potripper folds preflop. He doesn't fold another hand pre-flop for 20minutes, when he open-folds with KK held by a player behind him.
11) The IP address recorded for user #363 tracks out to be a user who uses email on an Absolute Poker server hosted by the Kahnawake Gaming Commission
(More info here)