Digg’s CEO Jay Adelson said in a company blog post that the the way Digg handles shortened URLs is permanent. Originally, a Digg shortened URL would link directly to the source. Now it links to the source’s Digg story and comments page on Digg.com. However, If you are logged into Digg, the shortened URL will redirect you to the source and not Digg.com.
Adelson said that Digg never wanted to become a URL shortening service. URL shortening services such as bit.ly and tinyurl decrease the size of large URLs so it can be shared over Twitter and other social sites.
The changes apparently took place when Digg founder Kevin Rose was on vacation. At the time, he said he was unaware of the changes.
Digg users are very unhappy about the changes. The DiggBar created a lot of controversy when it was launched. People hated the DiggBar so Digg made it optional for logged in users and discontinued it for logged out users.
Digg did mention that all links created prior to today would redirect to their original story.