Expert Advice Need - WTF is going on!

I don't get why this is a mystery lol

The previous site owner was ranking #1 for that keyword, so when you put the domain back up, Google thought it was the same site (at least temporarily)

But you said you uploaded your own homepage, so Google comes back and realizes the page is not the same, and you lose the rankings. (site is not the same any more)

On top of that you could have been hit by an algorithm update, as there have been tons of changes ever since Penguin 2.0 rolled out at the end of May.

Also you had #1 spot, even though the word was "competitive", it only yielded 35 impressions, which means there's no search volume so who cares.

Case solved.

Bingo, think this is the only possible explanation for this, it is highly unlikely to be a penalty as you have stated. Unfortunately I do not see any quick solution to this problem, it is possible your site may recover but unlikely as you have no 301 redirects from the old site I assume?
 
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