The rumor started when a moderator on NeoGAF posted a thread early this morning breaking the news. The most telling sign, though, is the fact that you can no longer purchase their latest release, SMASH+GRAB on the Steam store.
SMASH+GRAB released on early access last month on Steam and has a "Mostly Positive" review standing. They had a free weekend the last couple days, perhaps in order to increase sales, but this may not have helped.
The studio has yet to officially respond at this time.