Basically, someone called out CipherCloud on apparently bogus claims about what they provide (homomorphic encryption). CipherCloud responded with DMCA takedown notices. Now they are trying to explain their actions, with a lot of "trust us, we are only hiding the crypto details because we need to maintain a competitive advantage!"
One correction: I don't think CipherCloud have actually claimed to do homomorphic encryption - at least I can't find any such statement on their web site. That was an assumption on the part of the StackExchange user.
It would be hard for them to make a security guarantee that isn't bogus, if the screenshots from their demo is an accurate representation of their technology, but they don't appear to have made this particular fraudulent statement.