I don't know the details. Nick Sivo is in charge of this stuff, and he'll post something about it. I know he thinks the root of the problem was a disk failure. The server got wedged, and when we rebooted, the file system was corrupted. I'm not sure exactly why it took so long to restore. I was out of town the whole time this was happening.
The reason we lost so much data was that we only do nightly backups. That seemed enough when we started. Now that HN is a bigger part of more people's lives, we'll make more of an effort to make it proof against this sort of problem.