They will "continue to operate" Torquepowered.com while InstantAction "explores opportunities" with suitors. Last month they sold the Tribes IP.
"Today, InstantAction informed employees that it will be winding down operations," said InstantAction boss Eric Preisz in a statement. "While we are shutting down the InstantAction.com website and Instant Jam game, Torquepowered.com will continue to operate while InstantAction explores opportunities with potential buyers for Torque. We thank all of our past and current customers for their support."
In October they sold the Tribes IP to Hi-Rez Studios who are already developing a MMOFPS. InstantAction provided a streaming games technology and an engine called Torque - they were formerly known as GarageGames. It's never good to see a studio fall.