Did Hurricane Electric and Global Crossing know about this prior to the Washington Post getting involved?
Does a bear **** in the woods?

Of course they did. They didn't care. As long as they kept getting paid for the pipe, and weren't getting bad publicity from it, they just kept looking the other way.
Now all of a sudden one of the media's heavy hitters gets involved, and OMG!!!

Shock and horror!!! HE and GLBX realize the jig is up, and 'golly gee, we should shut these Bad People down.' *snicker*
HE and GLBX are classic examples of companies which will partake in improper, immoral, unethical and even illegal activities so long as the benefits outweigh the costs. And no, I don't for a minute believe that they'd never, ever previously been told of spam coming from this facility.

I've worked abuse desks, I know how aggressively providers report this stuff ......... I've personally reported hundreds of spams to Hurricane Electric over the past 3 years, and they've all been completely ignored (based on the fact I have never seen a site removed from their network/downstream based on a report I sent to them.)
So, good for the Washington Post for getting this facility shut off, but, shame on HE and GLBX for letting it go so long that it took the *Washington Post* sniffing around to make them take action.
Incidentally, my inbox volume is down 38% today, and what was noticeably missing is: SPAM.

There were very few spams; all that was left was legit stuff - company email and various newsletters I'm subscribed to.
Even much more telling, on our busiest shared server, today we've received only 35% of the raw mail volume as we received yesterday. 35% of yesterday!!

Granted we still have 6.3 hours to go in the day, but we don't normally get a huge email spike in the evening

it's a sure bet that gross volume will be way down for the day.
I'm going to watch and graph this, and blog about it... this is incredible.

Bailey