He means that Dwolla is no longer processing BSInstant transactions.  And you can pretty much infer from the fact that they have simply gone quiet that their current status is....up the river without a paddle.  The 40% decline in BTC prices over the last month should have helped them out, but it's fairly obvious now that they don't even have a few hundred dollars in the bank to pay employees, much less to cover hundreds of thousands of dollars in undelivered transactions at any price.  I have a feeling the rapid price decline in BTC has something to do with BSInstant's inability to buy BTC anymore, since they were a major buyer.

They managed to somehow keep order flow coming for a lot longer than I thought they could after they first started lying about technical problems several months ago, but I'm afraid the ship has finally sunk.