Xterm has a feature to change the title of the xterm window by sending one of the escape codes of the xterm. (linux: man console_codes)
For example:
ESC]2;This is my Xterm^G
This escape code changes the xterm's title to "This is my Xterm"
This by itself isn't a vulnerability. The vulnerability lies in the fact programs tend to forget to check the size of the title passed by the escape code command, this can be used to cause the terminal to crash and possible execute arbitrary code.