Prosody before 0.9.4 does not properly restrict the processing of compressed XML elements, which allows remote attackers to cause a denial of service (resource consumption) via a crafted XMPP stream, aka an "xmppbomb" attack, related to core/portmanager.lua and util/xmppstream.lua.
Prosody before 0.8.1 does not properly detect recursion during entity expansion, which allows remote attackers to cause a denial of service (memory and CPU consumption) via a crafted XML document containing a large number of nested entity references, a similar issue to CVE-2003-1564.