It isn't directly related to the password hacking issue. But I believe it is a result of a MySQL config change that doodman made shortly after that happened to prevent some other hacking related issues on the host box. I don't know exactly what he changed to start this issue happening, but it appears that when it happens, the Login Server completely looses contact with MySQL, so it can't access the database for users to log in or for servers to fully connect to it.
The only way to resolve it currently is direct interaction from KLS or doodman as they are the only 2 with access to the host right now.
Again, even though this issue is much less common right now, I expect it should be completely gone when the new LS solution comes into effect.
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