Whats being inferred over in the Litecointalk forum is that balances currently owed will appear once all accounts are cleared, that we will be able to withdraw from, and pay the fee from, to continue mining. If this isnt a ponzi its the only viable solution I can think of that will fix this mess.

I find it odd however that he can work out what we owe him before he is able to work out what he owes us.