They still only have 4 engineers, and their lead engineer left. So, that's like 3 engineers and a trainee. To run a massive site with 120 servers and 830M pageviews/month.
Basically, they don't have the human resources right now to go in and fix the code that worked for 100M pageviews and broke at 830M. They're working on fixing it, but it's a slow process. Keep in mind, even after its layoffs, Digg still has 10 times as many engineers, with far fewer users.
Raldi commented on it here: http://www.reddit.com/r/announcements/comments/efpn0/reddit_...
Basically, they don't have the human resources right now to go in and fix the code that worked for 100M pageviews and broke at 830M. They're working on fixing it, but it's a slow process. Keep in mind, even after its layoffs, Digg still has 10 times as many engineers, with far fewer users.