From what I can see, traffic is back to the pages that lost it on June 2. The rankings are still different though, for instance one term is at position five and not two like it was before. Still, I'm very happy that the pages turn up in search again.
I personally made a lot of changes to my site, and honestly have no idea if the return can be attributed to those changes, or a change in Google's algorithm. I think the latter is more likely, as multiple site owners seem to have been experiencing a comeback on the same day.
Still, I did some onpage changes, mostly what was recommended to me in the Google Webmaster Forum thread I opened. This included nofollowing external links in the sidebar, removing dead links and removing profiles with obvious spammy links in them. I have added content to a few high-profile pages as well, and did lots of diversified link building, e.g. press release, bookmarking, guest articles and so on.
My site was never a thin content site to start with, and I always believed it to be an error on Google's part.
Im glad, ok, glads the wrong word, relieved to hear that Iam not the only one to suffer rankings drops.
Last week 18th saw a pagerank update [seroundtable.com...] and on the 22nd there were reported indexing issues [searchengineland.com...] Is the combination of the two not related to our (all of us) positions tanking?
Keep in mind that last week's PR update was only for what the toolbar shows. That's exported about four times a year. The true PR that Google uses is constantly updated and there is no way for anybody to know what it is.
But, as always, that doesn't mean that there couldn't have been an coincidental tweak to true PR at around the same time or, as I'm starting to suspect, maybe some sites aren't now passing the same amount of juice as they were before.
It was, according to information on the Google Webmaster Forums, a shift in the algorithm - and not a new sweep of penalties. Some kind of further evolution (or repair?) for the Mayday changes, designed to improve long tail results.
Visitor levels are now back DOWN to the levels previously seen before MayDay (having been 30 to 60% up since) and sales are now back UP to the levels previously seen before MayDay (having been 80% down).