In the Cloud (AWS, Azure, GCP), you are running in a Virtual Machine. You trust that the VM next to you (belonging to a competitor) cannot see your memory. A VM Escape vulnerability allows code running in the Guest OS to execute on the Hypervisor (Host). If successful, one attacker can compromise thousands of customers at once.

How Virtualization Works

The Hypervisor (QEMU/KVM, Hyper-V, ESXi) emulates hardware. It creates a fake "Floppy Drive", a fake "Network Card", and a fake "Video Card".
These fake devices are just C code running on the Host.
The Attack Surface: If the C code parsing the "Fake Floppy Drive" requests has a bug (Buffer Overflow), the Guest can exploit it to seize control of the Host.

1. VENOM (CVE-2015-3456)

A classic example. QEMU included code to emulate a legacy Floppy Disk Controller (FDC). Almost no one used floppies in 2015, but the code was enabled by default.
The Bug: The FDC accepted commands from the Guest. A specially crafted command could overflow a buffer in the Host's FDC emulation code.
Impact: A guest could execute arbitrary code on the host, escaping the VM isolation.

2. 3D Acceleration Exploits

Video rendering is complex. Hypervisors pass 3D commands from Guest to Host GPU.
PWN2OWN: Frequently features VM escapes via the Virtual GPU (vGPU) or Shader Compiler. The complexity of graphics drivers makes them a prime target.

3. Shared Folders (HGFS)

VMware Tools allows "Shared Folders" between Host and Guest. This requires complex file parsing.
If the Guest puts a malicious filename or structure in the shared folder, and the Host driver parses it incorrectly -> Kernel Panic or RCE on Host.

4. Rowhammer (Hardware Attack)

This bypasses software entirely.
By rapidly reading/writing to a specific row of RAM (DRAM), you can cause electrical interference that flips bits in an adjacent row.
VM Impact: If the adjacent row belongs to the Hypervisor or another VM, you can corrupt their memory.
Technique: Flip a bit in the "Page Table Entry" to grant your VM access to physical memory it shouldn't see.

Mitigation

1. Reduce Attack Surface: Disable unneeded emulated hardware (Floppy, CD-ROM, Sound Card) in the VM config.
2. Hardware Isolation: Use IOMMU (Input-Output Memory Management Unit) to strictly isolate device memory access.
3. Patching: Hypervisor patches are critical (e.g., VMSA advisories from VMware).