Also, access to LISH even without a root password provides access to some scrollback output, which could expose sensitive information.
Also, LISH allows multiple connections, all of which see the same console, so the attacker can just connect to it and wait for a root prompt to appear when root logs in next. (Does changing the LISH password prevent this attack if they're already connected? I doubt it.)
Also, most distribution boot processes can be messed with at boot from the console. For example, you can ctrl-c to stop important daemons from loading. In some cases you may be able to get a shell without the root password.
Also, Magic SysRq can be accessed over a serial console by sending a BRK. You do not need to be logged in to do this, and it could be used to kill processes, reboot, etc. I don't know if LISH allows sending BRK.
The connection is to the same TTY when I log in via the web terminal and SSH at the same time, so if you are logged in via LISH anyone with the LISH password has access to the logged in user's console + scrollback.
I wasn't able to send BRK from Putty though.
They've now reset all the passwords and fixed the bug that meant some of them were being stored without encryption. So what we're saying is there was window of a week or so where only LISH users affected by the clear text bug may have been open to an attack if they happened to use LISH during this time frame and the attacker was targeting them. Not great, I agree, but could have been worse.
Hopefully, they'll change their setup going forward so that each LISH connection to the same VM gets its own console.
It doesn't appear that you can reboot or enter single user mode from the LISH console login prompt.