Site hit by negative SEO !!!
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This isn't really my area, but let me try to help get the conversation started.
I don't think that the spamming of the term (without link) is going to directly impact rankings. I'm thinking that this is a technique that might be aimed at trying to influence google suggestions instead. The strategy there would be to have Google think that the word "fake" is the most common word to partner with your brand term and suggest it so that this deters people from using you. I'm not sure of how to best counter that without getting into a game of "who can spam the most" (probably not a good idea).
You said "Also all spam is created by site - paperhelp.org"
You might have other reasons to think that, but I would be careful if you are making that judgement just based on the fact that the pages link to that site. Sites employing negative methods will often make it look like a third party is doing the dirty work. That not only covers their tracks, but also means that any revenge is directed at another competitor.
You have been picking up a lot of new referring domains over the last two years and these seem to be at the low end of the quality spectrum. Whether that is down to the strategies that you have been employing or a a sustained negative attack you are probably the best placed to know. Based on the very quick look I just did I'd be looking at those in terms of what might cause a drop in ranking.
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I do get myassignmenthelp scam as a suggestion I am afraid. There are quite a few similar suggestions coming up as well. You can check them at ubersuggest.org
"Is this work of a hacker..."
Impossible to say for sure based on how much I've looked at it, but if those domains are legit then I would say that it probably is. It looks like a hacked wordpress plugin or something allowing them to create additional pages. It's quite clever really. If there is a referring URL it doesn't redirect. So, if you follow the link from a search result (or anywhere else) it redirects, but you can view the page if you do directly - or if you are a web crawler.
"Most Imp how do I counter this without starting a spam-war???"
Tricky. I'd start by setting up alerts to find any new occurrences. I'd be looking to try and contact the owners of every website this vulnerability is being used on. I don't think that Google has a means of reporting redirects, only malware.