p0sixninja worked a lot for this vulnerability, then pod2g made a process to run the exploit on iOS 4.1 yesterday. SHAtter is the codename source for this exploit, this vulnerability acts on the hardware of the device, so Apple can't close this hole, only on the new devices.
All Apple devices produced before the release of this exploit will be free forever, including the newly released iPod touch 4G and the iPad. The next jailbreak may be tethered which means you have to connect your device to your computer to be able to reboot it.
Anyway Apple loses the fight. As usual, we will keep you informed by any updates about this jailbreak that will frees all devices.
Update 1: p0sixninja discarded the tweet and deleted SHAtter page from the wiki blog because the information was accidently misleading. Will Strafach updated his post to include more information and facts,
- We have not yet announced if this is tethered or untetheredWe will keep updating for more information we get
- We have not yet announced details about the exploit
- Anything you read saying it is one of the above in definite terms is just speculation, again, we have not given official word about the tether status or any details regarding the exploit used.
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