Turns out, it is a connected event.
Web searches have led me to believe that My Gmail was hacked by vanigo.com who sent spam to my contacts and then deleted all my contacts.
Google says it cant help recover the contacts. Thats absurd. Even Microsoft helped recover contacts of all its users that had the problem on Hotmail:
Lost Contacts & Vanigo - Windows Live Help
I am enraged - had more than 1500 contacts - emails, phones, addresses. Moreover, I have a G1 phone so all my phone contacts (those 1500+) are gone too since G1 synchs contacts with Gmail.
I used to be a big Google advocate. Now I will boycott all Google products and start a Google hate group.
And before anybody jumps to claim that I wasn't careful and that I shouldn't blame Google, let me say this: my password is not a dictionary word, is not a name, is 10 characters long, is a combination of upper & lower case letters, digits and special characters, and was categorized as STRONG when I filled it in (the green almost filling the whole password strength bar). I do not use public computers and my computer is secured by CA, McAfee and Norton. My WiFi uses WPA encryption. All things considered, I am reasonably certain that I have taken adequate measures to protect myself (apart from backing up my cloud data).
I had been using gmail exclusively from my G1 phone for a few days when the breach occured - had not been using my laptop for anything at all. Also since for most people affected the breach seems to have happened at or around the same time period, it lends credence to the hypothesis that it's the cloud that was breached.
And don't you think it sucks that Microsoft, the company that we all have always thought of as having the suckiest support, is actually helping its users and Google is not
Contacts & Address Book - Windows Live Help
Lost Contacts & Vanigo - Windows Live Help
Google's stubborn resistance to restoring the contacts is just annoying. All they need to do is restore the state to that on a particular date. I am sure they have this information at not one but hundreds of servers - gmail, gtalk, g1, backups, caches, etc. What's the point of a backup if you cant restore it?
Also, check out:
SOS: All G1, Gmail, Gtalk contacts disappeared. Please help! - Google Mobile Help