The details of the TBM exploit have been uncovered by Harold ""LabRat"" Brown of the Torque community.
For complete information, see this thread.

Basically, TBM detects AiO installations and compromises them so that anyone can connect to the compromised server and then proceed to upload and execute any script they want. There are a number of things a malevolent person could do to a compromised server including overwriting all of the script files, effectively removing the entire game.

If you have installed TBM at any point in the past, I am forced to recommend that you delete your Blockland directory and re-install the game.