Were exchanges established by the states or by the State?

We The Poor of the United States await the ruling of our masters, the Supreme Court on the issue of federal subsidies for Obamacare. The line in the law that allowed the rabid nine to jump in talks about exchanges "established by the state." Thirty-four states did not establish the exchanges. Will the entire law be in jeopardy because of the lack of capitalization? To me, "the state" means individual states whereas "established by the State" could conceivably refer to the State meaning 'the government' in which case the Federal Government would meet the requirement. I think the entire mess can be laid at the feet of the Democratic Party. How could they have been so careless?! There is no room in law for careless mistakes. They will lose this decision and the culpable party will be lost in the translation. People will howl about the court and how it should not have accepted the case, but it's like giving a seven-foot-tall East European basketball player a set-up for a slam dunk. They just hang under the basket for this. They live for this. They'll cram the decision down our throats and all the yelling about subsidies for roads and disaster relief and big oil will be moot. The point is the Democrats blew it. Why? That will be the subject of many a book. How? That only takes this short blog by a long hair leaping unknown. Maybe it's the lower-case "s." Maybe it's just the use of the word "state" instead of "federal government."
I suspect that some lobbyist created this mess and the Democrats fell for it.