The bzexe command in bzip2 1.0.5 and earlier generates compressed executables that do not properly handle temporary files during extraction, which allows local users to execute arbitrary code by precreating a temporary directory.
https://euvd.enisa.europa.eu/vulnerability/EUVD-2011-4040
https://bugs.debian.org/cgi-bin/bugreport.cgi?bug=632862
http://www.ubuntu.com/usn/USN-1308-1
http://www.openwall.com/lists/oss-security/2011/10/28/16