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Dropping to 300 hits a day like that sounds like an algorithmic penalty. Try to think back what you've changed in the last couple of months before it happened, it may be something technical. It may also be some bad links but I doubt it.
Sometimes you just can't figure out what the fuck Google is doing. I bet sometimes even Google themselves don't know. Last year my main money site started alternating between being #3 for its main keyword and top 10 for several others, to being nowhere for them. It would change every two or three weeks and always at the start of the weekend. I never did figure out why the fuck it was doing it, but come March and this update, that stopped and it gained traffic. I think the best way out of situations like this is to build authority which requires both strong links and quality content.
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