Why was the event skipped this year? I hadn't participated in 2011, but I wanted to know has the event been discontinued?

It hasn't been. :) Keith has stated that the event is going to happen, but due to the site errors around the Pandemic, everything has been pushed back slightly.

The event wasn't skipped. It hasn't started yet :P It's always after the end of Masquerade and Masquerade isn't over yet.