I believe it was a bad main bearing on engines made in a specific time frame in 2002, but it may have included some 2001 dates as well. The engines are now subject to a 6 year 100k (or unlimited mileage?) warranty, and I would not let it put you off if you are thinking of buying a new M3.
It would also be applicable to any 2001 M roadster or M coupe that shares the M3 engine, assuming that the production dates for those cars fell within the defined range, but I don't think that it does.
Such problems are not unique to BMW. The first-year of the 996 series Porsche 911 (1999) has a bad main seal that leads to expensive engine repair/failure. Porsche, however, has not stepped up their warranty and as a result the 1999s are worth much less than a comparable 2000, at least to a knowledgable buyer. Audi is currently experiencing strange failures with the new S4 that they are still trying to figure out. Many S4s have been rendered undriveable and I understand that Audi has picked up the cars, provided a long-term loaner, and nobody knows when the situation will be resolved.
They may also be referencing a different phenomenon that can destroy an engine, the dreaded money shift. That is not unique to BMW (don't ask me how I know), and results when a driver misses a shift and over-revs the engine. E36 M3s are notorious for that problem, which is a result of the ability to over-rev by getting into 2nd at a speed too high for 2nd to safely engage, (say at redline in 3rd, approx. 85-90 mph, or higher speeds.)
A journalist just blew up the engine in a $440k Porsche Carrera GT when he shifted from 5-2 and sent the engine spinning to the sky. It blew at 14,500 RPM, which speaks of the strength of that motor.