I remember reading about this happening to a few other design blogger websites over the last few weeks. I'm still trying to wade through the "I hate Godaddy" posts to find if anyone has any idea why this might be happening. I'm guessing weak passwords.
I waded through most of it and it seems as though the domain owner's email was broken into which then allowed the thief to begin the transfer process. So from what I'm reading here it actually wasn't GoDaddy's fault but just another Gmail account broken into.
I hate GoDaddy more than probably anyone here but it looks like their upselling and bad design didn't cause this one. Rats! I really wanted another excuse to talk shit about GoDaddy.