First, let's head over to PWBeat. Heidi posted a letter that was sent out to all the Tokyopop OEL manga creators. Of course it tries to paint a rosy picture, saying that they're transitioning work to new editors (getting cut), and says that they'll have their editors contacting them soon. At the very least, they're still getting paid:

We understand that this announcement may have created some uncertainty for you and we wanted to reach out as soon as possible to reassure you. While there will be some changes in our publishing program, we can tell you that if you are working on a project for us, keep making great manga, stick to your schedules, and turn in your work so we can get you paid!

Following this, The Beat also collected responses from the OEL manga authors themselves. Artist Rivkah was the most critical of Tokyopop, saying, "Instead, for perhaps the first time ever, Tokyopop has made the right move by cutting back on how much spagetti they throw at the wall to see what sticks." But, she follows through with her explanation. Tokyopop is throwing too much money around, and doesn't have a rigirous process for deciding which titles to fund and which ones not to. They're essentially at a point where they're hemmoraging money, and it needs to stop. That'd be why Tokyopop has pulled out of the San Diego Comic Con.

For many companies, attending a convention is pricey. Atlus doesn't attend E3 because of the incredible cost, as they're a niche publisher. Many companies pulled out of the old E3, citing the enormous costs, bringing it to its current press-only status. So, Tokyopop is making a smart decision by not funneling more money into what amounts to a pretty show, when they need to keep their company stable.

For a bit more on this, take a look at Mangablog's coverage of the latest turn of events. They've got reactions from other reaches of the blogocube, which might interest you.