You can read the whole thing on the Dashcoin thread on bitcointalk.org I'll keep things short. Since Dashcoin is a copy of Bytecoin, it was effected by the same bug found by the Monero team back in Feb and published in April. Dashcoin team then released a fix in May to all exchanges and pools, here are a couple of quotes from the bitcointalk thread:
Minergate are aware about the problem since 13 April (they integrated fix for Monero and Bytecoin), they got a separate fix for DSH since 9 May, and they get notified about the double spending less than 24 hours after it occurred on their chain.
They said their damage is 10000 DSH, we offered them 20000. The reply after was they have too much tech difficulties to roll back. That was 1 or 2 days after the split. Their next offer was to join their chain, but at the time there was already 17000000 DSH double spent on their chain.
Now their damage purely because of mining is between 150000 and 200000 DSH, and they cannot simply roll back because it will damage too much reputation.
After suspending Dashcoin payouts for a few days, Minergate finally released a statement which basically saying they decided to stay on the old chain and apply their own "fix" to it.
I have great doubt they would actually "fix" anything since they don't even have a GitHub repo for Dashcoin...
However, the problem is Minergate controls a majority of the hashing power of Dashcoin (145.9 kH/s Minergate 188.4 kH/s total, checked as I wrote this), and it seems like they got HitBTC on board too (Cryptopia seems like agree to use the new chain). So what they are doing is hijacking their miner's consensus and hashing power to stay on the their "fixed" chain, which results in a hard fork.
By July 6th
Original Dashcoin blocks: 762722
Minergate Dashcoin blocks: 781184
Chainradar Dashcoin blocks: 781136
Check block 781135 on minergate and chainradar, they are the same.
This is not even a hard fork, this is a pure hostile takeover, and most of their miners don't even know what is going on.
I stopped mining with Minergate since I found out about their bad reputation. But what this hard fork action implies, is much scary IMO.
Any thoughts on what is going to happen?