can someone please explain to me what proxy traffic is...
 

How is it generated, and why is productivity so shity with it.

computers don't buy memberships!

my traffic provider says its cleared from hit bots

The simple.. It's when someone uses a service or software, to mask the real IP address (and other possible details) of the person visiting your website.

If a person is savvy enough to setup and use a proxy, it's a tech or webmaster, it can be a porn surfer but that person would know where to get it free, instead of paying for it.

Find a new traffic provider.

A hit bot is different, this is software created to act like a human, surf the site, click links, read things, enter in details to signup forms, and a mixture of naughty things.

Where ya buying the traffic from?

I need to know who not to goto.

no they cleary state this in the terms they have this type of traffic for sale, I was just testing it on a site to see if if it would help in alexa.