I wonder if this is a diversion to keep Linode's security team busy so they won't notice someone compromising the Xen nodes with XSA-185/6/7/8?
That said, I don't disagree that the attackers might be trying to distract the team while they exploit that... though I don't see what it gets them compared to quietly exploiting the XEN issues before they were common knowledge on 9/8.
XSAs are released alarmingly frequently. I've always wondered if KVM is really more secure or if it just gets less scrutiny (certainly there's a class of qemu vulnerabilities that impact both hypervisors).
It would appear? you'd need to go back for quite a few months of being unpatched to find a genuine issue. Unless something about Amazon's mitigations don't apply universally.