I just read Boris Kraft's post on losing the the Magnolia.info domain. I have had that happen to me (for a personal site) but never with these consequences. If they can't get their domain back, they will move to magnolia-cms.com - which I think is a better domain anyway. A .com or .org is easier to remember (says the guy with a .net domain).
Best of luck to the Magnolia team in getting their website back and a reminder to everyone else that they should stay on top of their domain registration!