Neil Patel at Pronet Advertising published an expose on how Digg is using unseen and unamed moderators to control which stories get promoted to it's homepage. The real problem is they are "blaming" it on their users, which unfortunately for Digg, doesn't corroborate with the data they are publishing Digg is Censoring Content by Burying Stories Internally
You probably think users buried the story, but it actually was one of the Digg employees who buried it or an algorithm that is targeting specific content topics/sites. If you don't believe me, here is a document that contains 10,000 buries from that day and none of them seem to be buries for the I'm in like with You story.
My own research agrees with what Neil is seeing. If Digg wants to employ moderators to editorially guide the stories on their site that's all well and good and within their rights as owners of the site. However what they need is the same level of transparency for 'bury votes' as they have for Digg votes, and they need to take accountability for those decisions instead of blaming it on their users.