This exploit allows an attacker to inject and execute arbitrary commands on the target system. The attacker creates a directory structure using the 'mkdirhier' command and then exports a variable to a specific directory. The attacker then writes a shell script to the exported directory that copies the '/bin/sh' binary to a hidden location, changes its ownership and permissions, and executes it. Finally, the attacker runs the 'lsmcode' command to execute the injected code by executing the hidden shell binary '/tmp/.shh'.