I agree, the paragraph is strange and at best reads like a non-sequitur.
Then again I always associated the username "dang" with the word "dang", which I thought it was an amusing (and appropriate) choice of name for a moderator.
Right; it took me forever to realize that "dang" was "Dan G" and not just a word. Especially since HN usernames can have mixed case, so he could have picked "DanG" (which... I still would have probably read as a funnily-formatted word but it'd be more of a hint:]). Though for all I know he predates HN supporting uppercase in names, and stylistically I can totally see preferring lowercase.