The administration went before the judge and argued that it shouldn't be required to provide the health benefits because of DOMA (yes, the President was actually using DOMA to get out of proving health care to a lesbian). The administration lost. The judge ordered that the benefits be provided.
2. The Obama administration then went behind the judge's back and told Blue Cross not to give the lesbian wife benefits. The judge then ruled again, demanding that the Obama administration provide the benefits.
3. The Obama administration then ignored the judge and issued two press releases saying they now didn't recognize the judge's authority.
4. The judge has now ruled again. And this time, he's saying that because the administration didn't even bother appealing his ruling - instead they simply issued two press releases late on a Friday (ostensibly hoping the gay community wouldn't notice) - the judge now says that the administration is no longer permitted to attend the appeal before the entire 9th circuit.