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We moved it at the very beginning of July. I made that more clear in the article now. Thanks for pointing that out!

I just read the article and looked at the image and it's still really unclear. It looks like you lost all your traffic immediately prior to switching to the subdomain and nothing in the article said otherwise.

It's not clear exactly how that graph works; if the indicated bullet point represents "total pages views in July" then it would seem to show a decrease in the period starting immediately after the move.

there are many different types of Google penalties. It doesn't have to be a complete loss of traffic. Sometimes you get bounced back 1 page, other times 3, other times 99 it varies based on the 'offense.'

You are correct in stating this was only a slight drop in impressions. In this case I would say this is Googles fuck up. The algorithm is not mature or smart enough to see that the blog was moved.

I agree; also, there is no evidence that restoring to /blog 'fixed' the problem... it's possible they just lost traffic!