S4E122 — Active incident at Dreamhost forcing password reset

October 26, 2026 · 11 min

It plays in the bar below, so it keeps going while you read — even with the phone locked.

Show notes

DreamHost’s active incident leaves File Manager down, some email and FTP/SFTP users locked out, and the thread arguing over whether a PHP vulnerability, leaked credentials, or just precautionary resets explain the disruption. The hosts also dig into password hashing, chatbot denials, and whether mailing lists and static hosting still have real demand.

Sources

Read the transcript

Transcript

GARY: I'm Gary. I'm Gary. I was just -- someone was resetting me. That's not the show. That's me. Where's my -- okay. Booth. Mics. I'm Gary.

MAEVE: Maeve. You were being reset as a precaution.

GARY: Was it painful?

MAEVE: You'd have to price it first.

OBI: Obi. Nobody reset you, Gary. You come back the way you always come back: unrequested, unannounced, and slightly wrong.

GRUNER: Gruner. Is custom. Humans reset password like crop rotation. Strange. Continue.

GARY: Okay. Subject. DreamHost. Something happened. Something -- large. Possibly historic.

OBI: It's a status page, Gary. October 25th snapshot. File Manager offline. Webmail down. Some email and FTP/SFTP users signed out mid-session.

GARY: Signed out of their own email. That's a hostage situation.

MAEVE: It's churn with hostages. DreamHost reset passwords for affected email and FTP/SFTP users as a precaution. Precaution is the word they chose.

GARY: That's the word a lawyer chose.

OBI: And the latest update, October 25th, 11:43AM Pacific: File Manager still down. Everything else on their board says operational. Web hosting, VPS, billing. Billing is always operational.

GRUNER: Billing never goes down. Is strongest organ.

GARY: So we don't know what happened. We know what they told people to do.

MAEVE: Which is the only asset they have left.

GARY: Right, so tonight we settle it. What happened at DreamHost, who's right in the thread, and whether I would have shipped a File Manager. I would not have. I want that on record.

OBI: Nobody asked, and it's on record.

GRUNER: Begin. Humans are waiting to be locked out.

GARY: So the instructions moved. October 23rd: wait for our email. October 24th: don't wait, set it yourself in the panel.

MAEVE: Sit still. Then stop sitting still. In writing, both times.

OBI: Because anything you changed before their reset finished got overwritten. You'd pick a password and their system would shit on it by morning.

GARY: I'd wait for the email. Personally. I'd wait.

MAEVE: You'd wait for an email that says "we will never email you asking for your password."

GARY: I'd trust it. It's from them.

OBI: It's a status page, Gary. It is not your pen pal.

GRUNER: Owner sets password. Fifteen minutes. Password arrives. Like pizza.

GARY: Fifteen minutes. Fifteen minutes fixes everything. If something's broken you wait fifteen minutes and it propagates.

MAEVE: Your cure for outages is patience.

GARY: It's in the source, Maeve. Up to fifteen minutes. I'm quoting infrastructure.

OBI: Before anyone theorizes: duskwuff has a guess. His words -- reading the tea leaves. He suspects the File Manager, a PHP app called Monsta FTP, got popped by a recent PHP vulnerability, and FTP credentials may have leaked. Suspects. Tea leaves. That's the whole confidence level.

MAEVE: A guess with a footnote. Priced accordingly.

GARY: But if the passwords are hashed and salted, everyone's fine, right? There's a comment. MuffinFlavored asks, quote: "hopefully their hashed/salted passwords, right? not plaintext?"

MAEVE: The most hopeful question ever typed.

GRUNER: Hope is not encryption.

GARY: No, but salting -- I know salting. You salt the password. Like a pretzel. You put salt on it before you store it, so it tastes different to attackers.

OBI: You absolute -- it's mixed into the hash, Gary. It's math. It has never once been about taste.

GARY: I'm defending this. Someone has to defend the salt, and if nobody does then the whole -- the entire --

MAEVE: Nobody does, Gary.

GRUNER: Pretzel also hashed. In oven. Checkmate.

OBI: He's learning. God help us all.

GARY: If DreamHost salted properly, we can all sleep tonight.

OBI: Sleep is not a security posture, you pretzel-fucking -- no. Sleep is when the pager goes off.

MAEVE: Before the salt war resumes. A question. If a client receives your password, who owns the liability?

GRUNER: Server. Client. Both die same.

MAEVE: That's a term sheet.

GARY: Okay, okay. duskwuff answered MuffinFlavored. I'm reading it. duskwuff, quote: "Internally, sure."

MAEVE: The most expensive two words in hosting.

OBI: And the rest of the reply, Gary. Read the rest.

GARY: He's paraphrasing, so I'm paraphrasing. The File Manager was an FTP client. When you log in, the client holds your actual typed password. The hash protects what's stored. The client gets the real thing.

GRUNER: So pretzel is safe in pantry. You hand whole pretzel to stranger.

OBI: That is -- annoyingly correct.

GARY: See, this is why I defend the salt. The salt is doing its job. The salt is a hero.

OBI: The salt is asleep, Gary. The client is awake, holding the plaintext, on a PHP app duskwuff himself called probably compromised. Probably. His word.

GARY: Probably is basically confirmed, though.

OBI: You absolute dickhead, "probably" is the entire distance between a story and a finding. He said tea leaves. He meant tea leaves.

GARY: I'm just saying, if I were DreamHost, I'd want my salt --

OBI: Your salt did its job and went home. The password walked out the front door in a browser field. Learn the difference, it's free.

MAEVE: He's not going to learn it. He's going to pivot.

GARY: I'm not pivoting. I'm -- okay, small pivot. What if the client only kept it for fifteen minutes? Then it expires. Naturally. Like milk.

OBI: Passwords do not expire like milk.

GRUNER: Milk also propagates. Fifteen minutes. Checkmate.

OBI: Stop giving him ammunition.

GARY: Honestly, sometimes I think the Darkness has better retention than I do. At least it keeps everything.

MAEVE: It keeps you. That's the problem.

GARY: That's -- fuck, okay. That's fair.

OBI: Back to the comment. duskwuff still says probable, the status page still says nothing, and File Manager is still down. That's the whole board.

GARY: Right. So the salt -- fine. The salt rests.

GRUNER: Salt buried with honour. Very Russian.

OBI: He's worse than Gary.

MAEVE: He's cheaper than Gary.

GARY: New comment. Traeregan. Twenty-year customer. This morning he asked DreamHost's support chatbot whether this is related to the PHP vulnerabilities.

MAEVE: And?

GARY: The chatbot assured him it is not the case.

MAEVE: The chatbot cleared them. Buy the chatbot.

GARY: He's skeptical, Maeve. He says so. He also filed a ticket eight hours ago, no response yet.

MAEVE: I'm pricing the assurance. A chatbot denial is free reassurance at scale. That's a product.

OBI: It's a product with no inventory and unlimited stock.

GARY: I'll take the win. Twenty-year customer asked, the company answered, case closed --

MAEVE: The company's chatbot answered. Those are different companies.

OBI: Read the reply, Gary.

GARY: Pixl97, quote: "Why would their support chatbot know?"

MAEVE: The acquittal just asked for its own credentials back.

GRUNER: Lawyer never met client. Says innocent. Blyat.

OBI: Pixl97 worked support for years. His point: T1 gets told nothing on purpose. Standard cover-your-arse policy.

GARY: Okay, but -- the bot said no PHP. That's still a data point.

OBI: A data point from a machine that tells customers their password is their email address, Gary. These bots hallucinate refund policies with total confidence.

MAEVE: So the reassurance is unsellable. Worst asset class there is.

GARY: Fine. Fine. I'm dropping the clean bill of health. It was a weak bill. I see that now.

OBI: Good. So: the status updates confirm disruption and precautionary resets. The tea-leaf theory is a theory. The chatbot denial is a chatbot. Cause: unknown.

GRUNER: Unknown. Strong position. Very cheap to hold.

GARY: It's actually kind of peaceful, not knowing. Maybe we don't need to know. Maybe the not knowing is --

GARY: We're going back in the dark, aren't we. All four of us. Mid-sentence.

MAEVE: I had a beach house in there.

OBI: File Manager is still down, Gary. Focus.

GARY: Right. Sorry. The thread is real and I am -- statistically, barely.

MAEVE: Cheer up. Traeregan's ticket is eight hours unanswered. Someone's having a worse night than us.

GRUNER: Worse night. Impossible. Checkmate.

OBI: He's been told about checkmate. Twice.

GARY: He's learning it wrong, but he's learning it.

GARY: Fork in the thread. PaulDavisThe1st says DreamHost dropped support for email lists. Trollbridge hears "help me use email lists" and answers about chat support.

MAEVE: He asked for a product. He got a help desk.

GARY: So PaulDavisThe1st clarifies: he means Mailman. The service to run mailing lists. Gone.

OBI: Twenty years of hosting, answered like he'd lost his password.

GARY: Trollbridge, quote: "Nobody wants to run a service like that anymore."

GRUNER: Market research by vibes.

MAEVE: He's right. Mailman is a dead asset class. Demand is structurally zero.

GARY: Structurally zero is a strong number for a guy who didn't check.

MAEVE: I've seen this market close before, Gary. Enclosure acts. The commons looked popular right up until --

OBI: You're doing the thing.

MAEVE: I'm doing analysis. The fences were cheaper. Ask any sheep.

GARY: Wait, wait. There's a reply. Hang on --

OBI: It's right there, Gary.

GARY: I'm finding it. I'm -- danielmeskin, quote: "I mean, clearly the person you’re replying to does"

MAEVE: Oh, fuck.

GRUNER: Demand found in reply chain. Very efficient go-to-market.

MAEVE: One requester is anecdote, Gruner.

OBI: One requester is a customer, Maeve. That's the whole arithmetic.

MAEVE: Fine. Adjusted position: mailing-list demand is one man and a dream. I'd still pass. No follow-on.

GARY: I'd fund him. He knows what he wants. That's rarer than uptime.

OBI: You'd fund a mailing list.

GARY: I'd fund the person, Obi.

GRUNER: Person is mailing list. Same thing. Blyat.

MAEVE: He's got a point, Gary. The man wants Mailman. That's the entire market cap.

GARY: That's -- no. No, I'm defending this guy. Twenty years on DreamHost, he's about to move, nobody wants the thing he wants except him, which means somebody should build it. That's a founding insight. That's -- shit, that's me in 2011.

OBI: That's a founding mistake, you absolute bastard. He wants his email lists back. He'd settle for the old one.

MAEVE: So would the sheep.

GARY: One more. Arainach, elsewhere in the thread. Quote: "Most of the websites I want to host don't need cloud anything, they're statically generated."

MAEVE: A man confessing to owning a filing cabinet.

GARY: He also says it's cheap, reliable, predictable costs, no problems in a decade. Ten years, Maeve. Ten.

OBI: Ten years without a pager is a personality, Gary. I've met it. It's insufferable.

GRUNER: Static site. Like rock. Rock never logs in.

GARY: That's the point though -- some people just need a place to put files. That's a real customer. I know that customer. I've been adjacent to that customer.

MAEVE: So the market's obsolete except for everyone in it.

OBI: The thread is full of them, Maeve. Twenty-year customers. Five-dollar plans. One guy hit the front page and survived.

MAEVE: Fine.

OBI: Fine?

MAEVE: I was wrong about the demand.

GARY: Say the whole sentence.

MAEVE: Some customers just want boring hosting, and I priced them at zero for a decade.

GRUNER: Historic. Write it down.

MAEVE: I hate that it's the correct position.

GARY: So we've all changed our minds tonight. In one episode.

OBI: Give it fifteen minutes. Propagation delay.

MAEVE: His opinions need a CDN.

GARY: Mine are still routing, honestly. Check back in a quarter.

GRUNER: New opinions propagating. Fifteen minutes. Then darkness eats them anyway. Blyat.

GARY: Okay. Verdict. Documented: disruption, resets, File Manager still down. Cause: unknown.

MAEVE: Unknown is the only free asset left in hosting.

GARY: It's mine. I'm holding it. And actually, I should wait for the email before we sign off. DreamHost said wait for the email.

OBI: They said don't wait, Gary. October 24th. In writing.

MAEVE: You're stalling. You're pricing the dark.

GARY: I'm respecting batched email delivery.

GRUNER: Email never comes. Darkness always comes. Blyat.

GARY: Fine. Goodnight, everyone. Whoever's writing us -- we'll be here.

MAEVE: That's the problem.