Anybody experiencing minus 80 penalty?

I have a 2 month old niche blog which was ranking in the first page in all three major search engines for the main keywords. All my link building was whitehat using manual social bookmarking and blog commenting. Suddenly I see that my rankings in Google were pushed down by roughly 80 positions for all the relevant keywords. I am experiencing this kind of penalty for the first time. When I checked at my link profile, I could see an inflation of incoming links because of too many sitewide links from the blogs I commented on.

Has anyone else experienced this Google minus 80 penalty?

PS: I have adsense on my blog.

This could just be the google dance.

Any ranking you see in the first few months your site is up is smoke, especially if it is in a fairly non-competitive niche. New sites with fresh content tend to get a higher ranking than they deserve while Google decides where they really belong. Happens all the time. I never even check the rankings the first three months a site is up anymore, because I know what I am looking at really has no meaning.

Google is not going to penalize you for some sitewide links though multiple links from the same site will be discounted so that inflated link count you see will not really do you much good.

I would keep on building your links, just make sure you have plenty of diversity in both the sites you add links to and the type of links you build.