tedster - 7:33 pm on Sep 18, 2012 (gmt 0)
Hello The BigK - and welcome to the forums.
Yes, I have seen removal of a high percentage of URLs from a site have a negative effect on traffic. It almost seems like Google takes some extra time to study the new situation at that point.
I'd say there's not much you can do but wait it out - and double check everything to make sure there are no technical errors, such as links still on current pages that still point to those removed tag pages.