I have written a a blog post here: Dream host hacked Apparently 3500 sites compromised and dreamhost still do not acknowledge the problem. I have digged the post and appreciate you do the same to let the community know.
Dream host has a lots of problems and one hacked account shares and results for the another. Time to move.
Dream host has over 500,000 accounts so 3500 is a very small amount. Almost all the big hosts have had some sort of security breach in some way. The real question is how do they handle the situation? Do they hide it or do they issue refunds and try to keep those affected happy? I mean if someones account is fine was not affected and they are happy I don't think it's time for them to move to some other host. On top of that one account does not share the problems of others if there are 500,000 domains I bet a lot do get exploits and they never affect others. This hole did not
It's not a big news, since at least 70% of the hosting companies are there because someone has bought a couple of servers and has installed some software and sells space on them. My security research group has found so many scaring big holes in almost all the hosting providers that finding a secure hosting has become a big effort.
I guess they have not Upgraded their cPanel, There is big security issue in cPanel 10.9.x http://www.milw0rm.com/exploits/3459