Quoted from Reddit...
"It is a problem with the pool implementation, the algo is fine.
Lyra2RE has a different share difficulty than scrypt-n, you've probably noticed your miner (correctly) submitting fractional shares, whereas scrypt-n utilized integers. But since Lyra2re uses a different share difficulty, the code that rejects low diff shares has to be modified as well.
Its completely our fault for not realizing this needed to be changed, but I'm guessing this part wasn't included in the stratum mining code, and that is why it is an issue for several other pools.
The effect of this was that most low difficulty shares would be incorrectly accepted as valid ones, which causes pools to calculate & display the hashrate far higher than it actually is.
I feel I should point out that there are very few miners who would 'accidentally' benefit from this. Because it requires your miner to not only submit its low diff shares (the default is to dump them), but also have a large number of low diff shares to start with. Normally doing these two things will get you quickly banned from a pool, because you're effectively spamming invalid shares."
http://www.reddit.com/r/vertcoin/comments/2po6te/lyra2re_difficulty_exploit_is_this_a_problem_of/cmys1cg
