I think Google has been doing this manually. All high profile web directories has been hit but smaller less high profile directories are thriving which sorts of tells me its being done manually rather than by algo changes

which sorts of tells me its being done manually rather than by algo changes

It does seem that way doesnt it? but it seems strange after reading Matt Cutts quote of:

One question on Matt Cuuts blog was:

I have submitted my site to a few paid directories am I gonna get banned coz of that
Answer from Matt Cutts:

Answer:
There’s absolutely no problem with selling links for traffic (as opposed to PageRank). At http://www.mattcutts.com/blog/hidden-links/

as previously posted here http://forums.haabaa.com/showthread.php?t=436 Is it a turnaround or a miss quotation I wonder, and how do G define between purchasing a link for PR gain or traffic?

Originally Posted by Robocop

I wonder, and how do G define between purchasing a link for PR gain or traffic?

They suggested that you add a nofollow link to links you sell in your directory, that way, listing benefit from traffic and not PR will be passed from your directory to the link buyer