Can anyone explain how this transaction malleability bug can be exploited to steal coins from a Bitcoin address? I thought it can only happen if you are an exchange, like Gox or Stamp, and people are making withdrawals.
loop:
deposit btc
withdraw btc
generate a new txid for the same transaction
get the new tx mined before the original
hope SR system has a bug and keep your balance intact if the original tx is not mined
go loop