I don't really know how mail works on a host but from the way this issue was it looks like they have one box dedicated to handling all mail and it lost its communications with the outside network.
This is the way I would setup small offices with one Mac running a mail server. You could unplug the mail server from the internet and inner office mail would still work but nothing could be sent or received outside of the office.
I did ask but didn't get a response.
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