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Disclaimer: Community trackers are created by Red Hat Product Security team on a best effort basis. Package maintainers are required to ascertain if the flaw indeed affects their package, before starting the update process. A flaw was found in libgd. Processing a specially crafted GIF file allows a remote attacker to trigger a buffer overflow, resulting in an application crash and a denial of service. Arbitrary code execution is possible in theory, but considered highly unlikely because standard image decompression and pixel manipulation generally destroy the exploit payload.
gedit's (and other GNOME programs) libgd is a completely different and unrelated codebase that has nothing to do with this.