It died horribly, when no one bothered to write entries.
Short stories never really had much of a standing contest-wise, due to them being a lot of work on both sides of the judging.
Not to mention the WoM is still running, and while it is not that big an energy user as it once was, I think most of the contestants are still on the ready for stealth assignments and what not.
But it might be worth it to get one running... I just know that I won't be able to participate properly.
Otherwise, there is Xzeno's cool tweet-sized fiction contest, which might be at least some of what you are looking for.