Nothing really is going on. The Typelevel "fork" of Scala would better be called an extension or an experimental playground. They have broadly the same goal as Odersky for Scala but want to get there faster. They intend to remain compatible with Typesafe's compiler and Typesafe intend to merge their changes back.
Paul's fork is him exploring some ideas and not intended for widespread use. To quote the README:
"It's still in development, in every imaginable sense. I would prefer not to publish code in this condition ... However since typelevel has also forked the scala compiler, publishing now and giving them an opportunity to exploit my work seems the lesser evil."