I didn't write about latest Geohot's exploit on this Website (but I covered it on the Italian version of this Website). Essentially his exploit managed to trip the hypervisor and run unauthorized code and get full access to the console hardware.

This exploit was using the linux support feature, a feature that thousands of people are using, both for fun or research purposes. The PS3 doesn't have mush RAM available, only 256MB, but has a very powerful CPU, and it is used in many computer clustering solutions.

Also linux offers some illegal uses, like bluray disc copying, as you can just write dd if=/dev/cdrom of=/imagename.img to have a copy

This feature has been arbitrarily removed on the newer PS3 slim, as Sony said "is not worth the hassle to maintain the hypervisor".

After that, Geohot found an unpatchable bug on the hypervisor, so, how to fix it?

He just found the key of the door, but nobody dared to open the door yet, but they want to keep it close, so they just announced  on their official blog that they will disable linux forever for everyone with the 1st april update!! (Note: it's not an april fool, they said)

It's like to evirate the entire male population of a country, to prevent a potential illness!

And they also have some humour: you can choose to don't get this update, but you will lose access to the Playstation Network, the latest games, and latest bluray movies.

That means that this exploit has potential! Sony knows it, doesn't have any clue on how to fix it, and it's scared

The war has begun! Geohot is angry about this decision, and will release soon a custom firmware to keep the OtherOS option in the menu

Look at this:

Don't upgrade, and wait for Geohot!