It’s on. Chronic Dev-Team’s GreenPois0n jailbreak, which was due to be released tomorrow, has been pushed back. This announcement comes after news that hacker Geohot (known for his PlayStation 3 and iPhone jailbreaks), released limera1n, which is said to jb 4.0 and 4.1 across the iPhone 4, 3GS, iPad, iPod Touch 4G and iPod Touch 3G. The kicker?
Geohot was provided the code for SHAtter under the understanding that he would not release his tool using his limera1n exploit. Turns out, he went ahead with it anyway.
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SHAtter is now being held back as GreenPois0n is being worked on to retool their jailbreak to use Geohot’s exploit:
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This is to keep from exposing two exploits at once. However, we have read that limera1n causes problems, and isn’t quite up to par, even on devices that it’s compatible with.
The Dev-Team says, “cleaning the mess he [Geohot] made.”
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As the iPhone Dev-Team’s Muscle Nerd says, this is not the worst possible scenario, adding that “SHAtter may even be improved”:

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Still, it seems that Geohot is catching some heat:
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Still, in the end it seems that things got sorted out as Comex, who wrote some of the implementation code and shared it with Geohot, Tweeted the following:

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Currently, Geohot’s jailbreak has been reported as buggy, but he has been continually improving on it since the initial release.We wouldn’t recommend it yet, not until we know that compatibilities and bugs have been fixed. In addition, it is currently Windows-only (as of the time of this writing) with a Mac and Linux version on the way. Still, we aren’t running a tutorial yet.
What Geohot has effectively done, however, aside from releasing his jailbreak first and beating them by a day, he has forced them to hold back their release until they can retool it.
This is all sort of a testament to both approaches; Dev-team takes a more conservative approach, they find hacks and hold them to give them a longer shelf life. Geohot, on the other hand, is more along the lines of “this is what we do, we hack, so release the hacks” and the truth is that both approaches have their good sides. Dev-team’s take is more about community and long-term support for their tools.