> > So does this mean someone may have made some progress on understanding the
> CPS2
> > encryption?
>
> Nope.

I think the "hackers" just found what bytes to change in the XOR, so that in the decrypted rom image they will make the software think it's from another region... old region switch hack found in old emulators, that made games do weird stuff and freeze now and then.

With some effort, you could probably craft xors that make street fighter alpha work like pacman, without knowing a thing about CPS2 encryption.