At some point, the word 死ね was filtered on some popular Japanese message boards to prevent flames. 氏ね was quickly adopted as a replacement. 葉月, don't blame the readers: saying "(weird symbol) is also read (weird symbol)" is not helpful at all if you don't know Japanese. "Dye" was not a very good translation to begin with: since we're talking about internet slang and changing spelling to circumvent filters, something like "d1e" would have been a better choice.
D1e, you pedo!
It uses kanji 氏, which is read the same as 死 (die)