I don't think Iggly's description is very accurate.
The exam boards haven't looked at coursework or exams, but it is the schools who were asked to make the initial assessment, giving every pupil an expected grade in every subject they were meant to be sitting, based on all the evidence available to them, mocks, other tests and exams, coursework, etc.
These grades (CAGs = centre assessed grades) were passed to the exam boards, which had to adjust the grades according to statistical analysis. In essence, these adjustments (ie move all the students in a subject up or down, using rankings to decide which results actually moved up or down a grade or more) were aiming to ensure that the overall pattern of grades awarded to a school were similar to the grades the school achieved in the past three years.
This has created several tricky outcomes. First, CAGs tended on average to come out slightly more generously than statistically you would expect. I don't think that's too surprising, as teachers with borderline candidates are going to tend to err on the side of going up. So naturally, the statistical adjustment is going to pull grades down from the CAG on average. It turns out 40% of CAGs have met this fate, which is obviously disconcerting for teachers (and for students who on the whole have been told now what their CAGs were - they were confidential before results day).
In fact, the statistical adjustment has resulted in grades being slightly higher than last year's across the country, on average.
I keep saying "on average" and that is where the devilish detail lies. The impact is variable, and in some cases pupils have received more than one grade below what their teachers expected, or even gone down two or more grades in a subject. A statistical exercise will produce some odd results for some individuals - unfortunately, the number of odd results seems to be quite large, and some of the cases do seem hard to understand.
I have great sympathy for those who have been shocked or disappointed by their grades. But there will be many who got the grades they were hoping for, or found maybe one subject was a grade lower than their teachers forecast, but they feel overall relieved to get what they need. Obviously, these pupils will not be making a fuss, so the voices shouting loudly (understandably) give the impression that the whole thing is a disaster. It's messy and the government have not handled it well, but it's not a disaster for many students.