A critical vulnerability has been found in MySQL. The exploit allows a connection to submit an incorrect password for a known user. By flooding the connection MySQL can incorrectly allow access in as that user.
The full security advisory can be found at http://seclists.org/oss-sec/2012/q2/493
This error has been fixed in recent versions of MySQL, and the problem is not present on Red Hat and Centos operating systems (https://bugzilla.redhat.com/show_bug.cgi?id=CVE-2012-2122 & http://lists.centos.org/pipermail/centos/2012-June/126719.html).
If in doubt about the status of your MySQL installation, you can help reduce attacks by making sure MySQL is not accepting connections over a network; or connections that can’t be done, make sure host based control is used for users. Use of a firewall to limit where connections can be made from would also be advised as a secondary measure.