Summary: on case-insensitive/normalizing filesystems (default on OSX and Windows) it's possible for .git/config to be overwritten by the tree, probably due to a case-sensitive sanity check when the actual file is insensitive. .git/config can contain arbitrary commands to be run on certain events/as aliases, so it leads to code execution. This is a risk when you get a tree from a third party, so on pull/fetch+checkout/clone...
There's an analogous vulnerability in Mercurial.
Update, then run git --version and make sure it's one of v1.8.5.6, v1.9.5, v2.0.5, v2.1.4, or v2.2.1. And be careful when pulling/cloning from third-parties.
EDIT: right, no "or", what are you doing reading this instead of updating?