Glad it is back up. Possibly the firmware upgrade stalled the device and needed the reset it get it back going. D-Link will keep an eye on this.
When you get the green LED that means it is connected successfully to your Wi-Fi network, which will show active on the app. When the light goes off, it is entering power save mode which does kill the Wi-Fi connection, thus the app not showing up-to-date stats or connectivity. The sensor does have a keep alive and will turn on (i believe every 24 hours to report battery life and check for new firmware). I know we have complained about the 24 hours and should be more often. They should change that in a future firmware release. Note that the sensor is still working. When it detects water, it will turn on, connect to Wi-Fi and send a notification.