There are several parts to fulfill in fansubs. One of them is raw providing. Translators translate, typesetters decide on the subtitle styles, timers define the start time and duration of each subtitle, and editors mix the translations with the times, using the styles provided. The raws are encoded by encoders who often also mix the .ass file that the editor provided with the encoded raw (although, with mkvs, it's just a couple of seconds of mkvmerge).
ElitistFag provided .ts raws (that is, transport streams, basically, a recording of the japanese broadcast in lossless quality) for gg, and eventually he released the .ts for most shows airing. So several fansub groups depended on him to get the best quality before encoding.
Daiz is an encoder, leader (... or only member) of Underwater. He started a thread in bakabt denouncing Chihiro-Doki of paying ElitistFag not to release publicly the .ts of Motto to Love-Ru for 24 hours (they'd have access to it, and have an edge to fansub it before any other group).
We should also note that Daiz is not working in MTLR. He just believed that what Chihiro-Doki were doing (using IRL money to sabotage the speedy release of other groups) was wrong.
ElitistFag threw a fit, and stated that he will stop releasing raws indefinitely.
... I'm on Daiz' side here. Nobody should profit from piracy. I do wish that Wasurenai get someone to cap Milky Holmes for them fast, though.