Bobby, LJ superstar and center of the furry universe when it comes to reporting on fantastic drama,
made a post about this recently over on said LJ. Looks like it was just the furry rumor/paranoia mill running wild with speculation.
Besides, as was mentioned previously, if someone actually -had- died, no amount of "EVERYTHING IS FINE NOTHING IS BROKEN THIS IS NORMAL" fliers from FC staff could keep it quiet for this long. There'd be some terrible and embarrassing LJ/FA/Youtube 'tributes' and much BAWWing.
Oh well, there's always next year!
PS: Dear Bobby, if you see this please join Viv and bring your amazing drama reporting senses with you. We'll make you a mod and everything.