UCSF Diabetes Center

They have a great newsletter that goes out once a month- check this article out:
http://www.diabetes.ucsf.edu/about-us/news-events/news/201210/protein-central-diabetes-uncovered

Still being researched is a type of molecule that leads to the death of insulin producing beta cells.

Interesting article , I only read the 2 paragraphs on the page you linked.
The thing that makes no sense to me is the sentence about type2 .
The protein causes beta cell death in both type1 and type 2.
But in most type2 patients Beta cells are in normal concentrations and insulin levels are even higher and the average nondiabetic person.
So if there is betacell death in both types, how can there be high levels of insulin and high levels of C-peptide ?

It is not explained but there is a large piece of the theory missing.