The disease is caused by a fungus. As the disease progresses, the fungus works its way to a plant’s base and attacks the crown and roots. Affected turf appears yellowish, thin and shabby with irregular patches of dead grass.
Melting out disease occurs in lawns that are stressed from excessive nitrogen fertilizer, excessive water and a very short mowing height. Heavily infected turf with low nitrogen levels will look yellow or tan, whereas high levels of nitrogen will cause the turf to appear blackish brown. When these areas are raked, dead grass plants are easily removed.
Try using the liquid produced when using the bokashi system on your lawn. I have had good results and managed to keep the patches, which I suspect are produced by this lawn disease, at bay.