The Evil Cabal site started off with just a few hundred hits but its popularity rose dramatically when the council banned staff from accessing it at work and blocked the site on computers in the city's libraries. Chief executive Colin Hilton brought in police to investigate but the force insisted no law had been broken.
The council said it ordered the action because the website had caused "distress and anger" by making allegations about individual council staff.
The site's author closed the blog on Sunday evening, stating he had done what he had set out to achieve.
But city council sources claim that its author, "Tony Parrish", was forced to close it down by the internet service provider.
The blog is named after a comment by Cllr Mike Storey in a dossier of emails between him and ex-media chief Matt Finnegan, which led to him standing down as council leader.
It focused on the alleged conduct of former chief executive Sir David Henshaw, resources director Phil Halsall and Dr David McElhinney, managing director of Liverpool Direct call centre.