I rent something called a Virtual Private Server, which is a virtual instance of a server located in a server farm. It functions the same as a single server for a single website (though many servers host multiple sites, and I host some small stuff such as my personal web space).
Virtual Privater Servers and even dedicated physical servers in this server farm are all still organized and controlled by the hosting company, InMotion Hosting. They have super-admin accounts that can control the servers/services of their customers. The host themselves were compromised somehow, and virtually all of their customers (hundreds if not thousands) were affected by this "hack." There's nothing I could have done at all to prevent this, apart from being my own host and run Draconity.org off a personal computer in my home (not as reliable, frequent downtime, my Internet sucks, and I wouldn't be nearly as secure/update stuff because it wouldn't be my day-to-day job nor would I be paid to do it).
My host got hacked. These things happened. They have apologized to all their customers, they were very responsive to the attack, and in my opinion they handled it very well for the amount of people they have on staff. Frankly, I'm quite pleased with their responsiveness, honestly, and their service - this had a positive outcome in my mind. They were also smart in keeping all billing information and such on a separate network, highly isolated. It could have been anyone. It could have been much worse.