@freejung ... when dealing with Panda issues I think everyone will give you the same answer 'perhaps'
Yes, of course, nothing is known for certain yet. I mention it just to throw another datapoint into the mix.
It makes sense though -- you have lots of low quality (in fact blank) "pages" being served from the site (mine were not listed in the index, but Google probably knew about them anyway), lots of frustrated bouncers, false adsense impressions, probably various other "low quailty" indicators arising from this. Obviously Google would rather send visitors to a site without this bug than to a site with it, resulting in a higher percentage of satisfied searchers.
I am currently of the opinion that several factors led to my Pandalization -- this may well be one of them, but of course there is no way to tell for sure.