I am an Icelander. I have been watching all night because I KNEW that there was a HARD FORK coming.
Whether or not there was some hacking, which maybe there was, it seems that the coin is still operating.
Here is the thing, Icelanders have really gotten hit by the 2008 crash. People lost homes and have seen mortgages go UP and principal down (in effect, because mortgages are tied to inflation) and have had some reality biting them in the ass.
If you need crypto-currencies in Iceland just use Bitcoin or Litecon.
Auroracoin is dead. Good riddance, since it was just another shitcoin scam.