Yeah, they (and one other person) have been reported for sharing details about this "hack". It's being/has been dealt with and the next patch will correct the exploit if the last patch hasn't done that already.
The team are aware of this; Dorken had posted instructions on their WolfQuest blog, a link to which was promptly forwarded to the developer, hence the cease and desist notice. I *believe* action was taken against them for this hack, but I've seen some things on the Facebook group that would suggest they're breaking the rules in other ways. Whether or not they've been banned... I can't say. I don't play multiplayer and 2.7 accounts are managed solely by the WolfQuest Team.