And has been reversed engineered.
Expect to see massive amount of clones popping up everywhere.
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PS Jailbreak reverse engineered, detailed
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Posted Aug 28, 2010 at 3:28AM by Ryan F. Listed in: PS3 Tags: Exploit, hack, ps jailbreak
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32 QJ
While Sony temporarily halted the sales of PS Jailbreak in the land down under, elsewhere in the world, a German site called GameFreax has claimed that they have successfully reverse engineered the infamous PS3 USB dongle hack. According to their findings (translated):

64Byte static data that is emulated by Jig sent to the PS3
"We have taken a closer look at this PSJailbreak dongle. We can confirm that the PSJailbreak is not a clone of Sony’s “Jig” module. PSJailbreak is a self-developed exploit. The chip is not a PIC18F444 but a ATMega is used with a software USB interface. This means the chip is internally capable of emulating any USB device. PSJailbreak emulates a 6 Port USB hub on which different devices will later be connected and then disconnected. One of these devices has the product:vendor ID of Sony’s “Jig” module, which means this had played a certain role during the development of PSJailbreak role."
"But lets start from beginning: When the PS3 is powered on … A USB emulation device will be connected, which has a too large of a Configuration Descriptor. This Descriptor overrides the stack with a PowerPC shellcode that gets executed. Now, various USB devices are connected to the emulation USB hub. One device has a large Descriptor with a size of 0xAD, which is part of the exploit and contains static data. A short time later (we are talking milliseconds here) the jig module is connected, and encrypted data is transmitted to the jig module. A few milliseconds later, the Jig module answers with 64 byte static data, all USB devices are then disconnected, and a new USB device is connected and the PS3 launches with ‘a new feature’."
"PSJailbreak is NOT software update-able. The Update feature which is mentioned, can be done just with hardware modifications. So by ‘update’ they mean ‘buy more of our stuff’."
Big thanks to snowy2k6 and Kyle for the heads up!
[PS3Hax via Gamefreax]
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