I know the entire story. Malachi does not.
BOUT was once created by N-Log, published in Korea by HanGame. Wanting to expand BOUT to the Americas, Acclaim was given the right by N-Log to publish BOUT in America, renaming it BOTS!! Hacking became widespread because the entire game is client sided. Moonlight quickly became big as the creators often made sure gameguard and hackshield didn't patch it, and everytime it was patched it was quickly re-released. After a few years, Auron started a trend of dll injections in order to hack which cannot be patched. A few hackers, namely the Administrators of this game (Myself, Kenny(RedEyes) and Matt(RedShadow)) took advantage of this and made and released public hacks. This formed into BotsCheetah as we made our own hacking website.
Prior to the hacks becoming massively huge, however, N-Log abandoned BOUT. The reason to my knowledge is unknown, but they seem to have disbanded, perhaps bankruptcy. As a result, Acclaim no longer was able to receive updates, including the almost-just released Season2 released only on BOUT, including many new sets, parts, and the infamous Deathmatch. As such, Acclaim slowed down on BOTS!! as it was unable to be updated due to N-Log shutting down, resulting in BOTS!! downfall as waves of hackers poured in and Acclaim could do nothing about it.
Due to these two primary reasons, being the massive influx of hackers and the inability to update, Acclaim finally decided to shut down as they were not able to provide enough money for their servers as they were making. BOTS!! was a major cause of this, but failures in their other games (Such as Dance) also took part. They fell on August 25 2010. We literally celebrated.
However, during their time BEFORE their death, we took it upon ourselves to build off a project released by Auron -- we took the name BotsCheetah from our BOTS!! hack website and converted it to BoutCheetah for a BOUT private server. It has come as far as it did now, the only bugless and fully functional BOUT server still existing.
This sounds a lot different than yours.