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We received a request from a site owner to reconsider domain.com for compliance with Google’s Webmaster Guidelines.
We’ve reviewed your site and we still see links to your site that violate our quality guidelines.
Specifically, look for possibly artificial or unnatural links pointing to your site that could be intended to manipulate PageRank. Examples of unnatural linking could include buying links to pass PageRank or participating in link schemes.
Google Search Quality Team
I used the disavow tool to disavow EVERY domain linking to subdomain1.domain.com
What I'm trying to do now (before filling the 7th consideration request) is completely removing references to those pages inserted by the hack.
2 more reconsideration requests (very well documented)
That is because nobody is reviewing your site
I think the main question now is: is google considering subdomains as part of the main website? Do subdomains affect (positively or negatively) the main website?
[edited by: teokolo at 5:19 pm (utc) on Jul 19, 2013]
At the end of february I moved both blogs to a clean install of wordpress, so I consider the hack fixed since then.
After 6 months I got the manual penalty lifted.