Sorry, this is kind of scattered, I'm just throwing a bunch of thoughts here and haven't really organized them very well.
So, I was an early collaborator with Shmorky on the Flash Tub, and did a lot of voices and music work for it from 2004 when it started through to about 2009, which is also about the same time period that I stopped being around on SA regularly. I also worked on music for a Halloween cartoon that he produced for Stile way back in 2003. My interactions with him at the time led me to think he was weird, but I figured he was weird in the same kind of harmless aspie way that a lot of people I talked to on SA were weird. I honestly never realized how deep the rabbit hole went. My interest in working with him back then was because he seemed very talented and able to produce stuff extremely quickly in a variety of styles, plus it was fun being able to be on the front page of SA. I had separately started working with him and Lowtax (I did the music for the DVD releases of Doom House and Mood House), so it was easy to just fall into working on the Flash Tub as well. It really seems to me that it's only over the last 5 - 6 years or so that he's completely stopped trying stylistically, and just draws "Klurfs" and nothing else. I've hung out with Lowtax before in person, but never met Shmorky, fortunately.
I should add that at this point I've completely disassociated myself from everything to do with him, so I don't have insight into his Facebook etc. I've got absolutely zero interest in continuing to associate or work with him at all. He seems like a completely disgusting human being, and it sickens me that I let him manipulate me into being sympathetic for him as recently as the whole "recording the meltdown" incident.
Anyway, a couple of things that people have said here have rung very very true to my experience dealing with him in the past - particularly some of the things Mandarys has said in regards to Shmorky refusing to put forward any effort to get ahead. There were a number of times that I was begging with him to work on something that we could try to pitch to Adult Swim. In particular, I wanted to put forward a pilot of a Peezle Ward show, since I felt it would have a natural home there, and it actually had legs and was pretty funny (unlike a lot of his other work, which frankly ranged from weird to awkward garbage). He always hated the idea of doing anything about it, even when the submission process was actually open and it would have been possible to do so very easily - I even explained that I'd handle the pitch, the submission, etc... I just needed him to write me a script and do the animation. At one point I bugged him about it enough that he actually produced an episode length script (which I recorded, and it's still sitting around somewhere), but it was never animated. The other thing that rang very true - him getting upset about weird things. Stupid example, but I once called him "Dave Kelly" over AIM, and he flipped out at me and said that if I wasn't going to spell his name correctly to just not use it. He's got an enormous ego, and it can be impressive in a weird way when you first start talking to him, before it gets annoying.
In terms of what was publicly known about Shmorky when I was working on his stuff, I never saw much. I had seen the fleshlight ads, and I had seen the "DaveBunny" cartoons, but he had assured me that those cartoons were drawn on a commission basis, and that it wasn't something he was into. I feel a bit stupid for having accepted that answer now, because why would somebody commission you to draw yourself as a bunny furry? Anyway, stupid or not, I did accept that as an answer.
He's a tragic waste of talent. I really don't understand why all cartoonists seem to be completely fucked in the head. Not sure if I have any inside knowledge or can answer anything for anybody that hasn't already been answered a zillion times in this thread already by people who were closer to him, but if I can, feel free to ask. I don't think I have old AIM logs, unless they're saved in Trillian or something. I'll go hunting through that and see if there's anything interesting in there, but I doubt it.
edit: I was just reading a couple pages back, and I can confirm
thedevilphil@hotmail.com as being one of his old email addresses. He'd used it to talk to me before.