A quick summary of the Fan Bingbing scandal/disappearance with only CONFIRMED facts because I've been seeing so many rumors/lies/speculation that come from third party sources without any understanding of the Chinese entertainment industry: 
In 2004, Fan Bingbing starred in a popular, award-winning film called Cell Phone. The main character in the film was displayed negatively; he was a man who had an affair and cheated on his wife. He was widely believed to be based off of Chinese TV host Cui Yongyuan.
Cui Yongyuan had quit the entertainment industry 2 years earlier because of depression. But when the film was released, it took a huge toll on his personal life. He said the depictions of cheating and scandals were falsified and affected his family life.
In 2018, it was announced Cell Phone would have a sequel. Worried about the potential impact on his personal life, Cui contacted screenwriters and others involved in the sequel asking them to reconsider making the film. They said the film would not be marketed as Cell Phone 2.
They also told him the lead would be a different person and would examine other aspects of Internet culture. Yet in May 2018, Fan Bingbing posted selfies from the set of filming. She captioned them: "Cell Phone 2 on-set filming! Wu Yue is very happy!"
Wu Yue was the name of Fan Bingbing's character from Cell Phone. Fan Bingbing also practically stated the name of the sequel would be "Cell Phone 2." It appeared that Cui Yongyuan had been lied to. He was furious.
On May 29, Cui published Weibo posts with images of 2 contracts - one for a payment to Fan Bingbing of 10 millian yuan ($1.46 million) and another for payment of an additional 50 million yuan (so a total of $8.76 million). The smaller contract would be shown to the authorities.
As a result, Fan Bingbing would have hidden $7 million+ in taxable income. Netizens were furious, especially when Cui Yongyuan noted he had even more yin-yang contracts to expose (what this type of tax evasion is called). This became a hot topic throughout Chinese social media.
Fan Bingbing's lawyers responded by asking for an apology and denying any impropriety on her part. Cui Yongyuan apologized for not Photoshopping out her name. He then said he didn't intentionally want to hurt Fan Bingbing, he just wanted to expose this type of tax evasion.
By this point, netizens had figured out that Fan Bingbing was probably doing this for all her films and television dramas. They were furious when they realized she'd probably evaded hundreds of millions of yuan in taxes. Public backlash on Weibo became severe.
In early June, the Chinese State Administration of Taxation ordered a full-scale investigation of these yin-yang contracts. Anyone found guilty of breaking the law would be punished severely.
On June 2, Fan Bingbing posted photos on Weibo showing her doing charity work by visiting children at a hospital. The top comment, with over 120,000 upvotes, said "Supporting Cui Yongyuan!" Public backlash was still severe. People were angry at her greed.
That was her last Weibo post. She was last seen in public visiting patients at a Shanghai hospital on July 1. Her last social media presence on Weibo (liking a couple of photos) was on July 23.
Since then, there have been rumors that Fan Bingbing has applied for asylum in the US, she's been placed under house arrest, she's been forbidden from leaving the country, she's been arrested and detained, and more.
What we do know is that Li Chen, who is engaged to Fan Bingbing, was seen filming for a show in August without his ring. It is also known that Li Chen is from a Chinese military family, which means it is not allowed for him to marry a person who has committed an economic crime.
Recently, a photo emerged of Fan Bingbing in jail with handcuffs. However, a few days later, the photo was debunked as fake. On Weibo, it seems that most Chinese netizens also believe that the purported photo was misrepresented and Photoshopped.
In an article by Chinese state-owned paper Securities Daily in early September, it was noted Fan Bingbing had been arrested and quoted an anonymous official in saying that Fan Bingbing would "accept the legal decision." However, a few hours later, the article was taken down.
What we do know is that several days later, Hong Kong-based media noted that Fan Bingbing's studio in Wuxi had been cleared out. It was reported that some studio staff said the office was going through a "cleaning." It was implied people would eventually return.
In early September, Beijing Normal University academics published a report on the "social responsibility ranking" of top Chinese stars. Only 9 celebrities passed the test, including EXO's Lay, the TFBoys members, and actor Yang Yang. Fan Bingbing ranked last--she scored 0 points.
In early September, the younger brother of Fan Bingbing (Fan Chengcheng), a celebrity in his own right, was at an event with fans. He cried throughout the event and at the end said "Hopefully, the next time we meet, I'll be able to protect the fans and my family."
Since the disappearance of Fan Bingbing, the public has called for investigation into the activities and finances of other top Chinese celebrities, most notably Huang Xiaoming and Zhao Wei. Both have been involved in stock manipulation scandals in the past.
Of course, the disappearance of Fan Bingbing is unsettling. But there are wider implications for the Chinese entertainment industry. Now, fees that stars can be paid should be no more than 40% of total production costs.
And earlier this summer, top Chinese TV producers like iQiyi, Huace Media, Youku, and Tencent Video stated that they would refuse the sky-high payments actors often demanded. It seems now that what started with Fan Bingbing has transformed into greater regulation of the industry.
THESE are the facts. No speculation, no mindless gossip, no rumors. This started with a grudge by Cui Yongyuan that was held over a decade. At present, there doesn't seem to be any government conspiracy theory. The punishment for Fan Bingbing will be another story.
Update: Fan Bingbing and Li Chen's mutual friend, Christopher Bu, posted a screenshot of Li Chen posting "Happy Birthday" in a private friend group on September 16, Fan Bingbing's birthday. The post's timestamp was 5:20. "520" in Chinese is pronounced similarly to "I love you."
Update: Fan Bingbing and companies related to her have been fined $86 million for tax evasion and $42 million in late taxes and other fees. The total amount (nearly $130 million) must be paid by an unspecified date, otherwise she will face criminal charges.
Fan Bingbing has made her first Weibo post since June 2. In it, she apologizes to the public for her use of yin-yang contracts. She writes that she is regretful and deeply ashamed for what she has done. She also promises to pay the fines.
