It appears that hackers have managed to get into Layered Technologies databases. There are reports that over 6,000 user id's and passwords were compromised. This just shows why encryption should be used more vigilantly.
It looks like the hacker got in over HTTP. He then accessed the database and copied the information. Passwords for SSH, MySQL, Cpanel and other applications were taken. I would suggest to anyone using this company to switch their passwords or think about another hosting company.