159w ago - Update: As confirmed by many users now (including DJLO who posted the pictures below), along with stopping PSN gamesharing Sony has blocked PlayStation Network access for PS3 Debug (8002A212 Error) and PS3 JailBreak users who now are asked to update their console through a message prompt.
Just over a month ago PS3 JailBreak users had a PSN ban wave scare, and today a new PAN/Europe TOS update may indicate that Sony is finally planning to begin banning JailBroken PS3 consoles on PlayStation Network.
172w ago - A few days ago we saw the inside pics of PS JailBreak, and today SKFU (linked above) has posted that PSJailbreak is both detectable and bannable on PSN along with Mathieulh confirming confirming that GeoHot's exploit was used and that PS JailBreak can be easily dumped.
He went on to state: "Actually they used the geohot hack to get code with lv1 privileges running on the console, they then used this to 1. Dump lv1 2. dump the spm syscall table (that's after quite a bit of lv1 reversing to even figure the spm exists) 3. Use the actual spm syscalls to trick the spu into calculating the proper response for the dongle id of their choosing.
Without those steps that all require geohot's hack, they could never have gotten their dongle to successfully identify as a jig and they could never have triggered their hack.
The psjailbreak basically exploits the update manager which is the code that does the dongle auth located inside the spm itself inside lv1.
We don't have the payload it sends though because we don't have a dongle to sniff...