Can someone explain how the malleability problem is manifest?
I thought Gox like other waited for 3x confirmations in the Blockchain before acknowledging transfers into or out of a Gox account?
Gox creates a withdrawal and makes note of the TXID. Then, before it is included in a block, someone else changes the transaction such that only the TXID changes, but the transaction is still the same. When the new TXID gets included in the blockchain, the customer who requested the withdrawal claims they never received it. But they actually did! Gox looks up the old TXID and doesn't find it, so they create a whole new transaction and send another withdrawal to the customer. The customer has now been paid twice!!! This is solely Gox's problem because they do not correctly track transactions.