what does (orphaned) mean
Simplifying a bit:
Bitcoin works at two levels. There's a peer-to-peer network that floods instant transactions from node to node. These are sanity checked and redistributed to the other peers that haven't seen it yet. They're fast but are only kept in memory.
Miners do the number crunching to form blocks. Blocks form the permanent records. These blocks are also distributed over the peer-to-peer network and are integrated into the permanent database. Miners are paid by the network itself for doing this. Miners do extensive validation and permanently record the transactions above.
If two miners both try to produce a block at the exact same time, only one can survive. The "fast" transactions are recorded in both blocks so nothing's lost. However, the losing miner doesn't get paid.
What happened tonight is a minority (but significant) number of miners
and end users with <= 0.7 rejected a large but
valid block and then went off on their own fork.
There were two solutions to this, either:
1)
Everyone must upgrade to 0.8+. Everyone. (Or upgrade to a fixed 0.7, 0.6, 0.3 etc and reindex)
2) Move enough of the 0.8 miners to the 0.7 blockchain fork and cause the network to reorganize. That makes everyone converge on the same chain again.
The upshot is that the miners of the previously winning fork gave up all their miner fees for the good of the community in order to get everyone back on the same page.
received block 000000000000016924f85069603be8164578eedf113f44d60bf0438cba047c7f
REORGANIZE: Disconnect 25 blocks; 0000000000000366ce98ca28338900094e8cbf445776253181749f782546d006..00000000000000df96f272c3b1e9dd15272b55750966cbd239219b94756c73ec
REORGANIZE: Connect 26 blocks; 0000000000000366ce98ca28338900094e8cbf445776253181749f782546d006..000000000000016924f85069603be8164578eedf113f44d60bf0438cba047c7f