Noone has been banned yet and GMs haven't made any statement about this other than they have reported it to the developers.
The key point of the glitch is to attack the boss as it is reseting. You can reset the boss by pulling it down the hall and using 2 holypaths to get away.
The boss spawns mobs continuously if the boss is in close proximity to you and you have attacked it. The position is a huge factor, if you stand in the boss's path as it is reseting then you get alot more mobs.
The best place to stand is at the corner to the boss room as the boss takes a little longer to walk around there.
You can also have an archer use stormrage eagleon to slow the boss down as it is walking by. This will basically double the amount of mobs that are spawned. With an archer doing stormrage and the rest of the squad attacking the boss at the corner you can easily spawn 600 mobs.
If you have 2 archers double stormrage you will likely crash the client. I don't recommend more than 1 stormrage. Best squads can get about 200m XP per hyper session.
Here is what a large pull looks like with stormrage and where you want the squad to stand