Today around 12:05 EST there was a Packages file distributed via macciti/zodttd's source that causes cydia to not launch properly. The issue is well known and a solution is being worked out. Please do not panic/overreact and restore. Again, DO NOT restore your device.
More Information:
Fix:
This is a simple fix really.
* Connect to your iphone/ipod via either ssh, mobile terminal, ifile, diskaid or some other type of usb file system browser. Browse to /var/lib/apt/lists/
* Delete cydia.zodttd-1.com_repo_cydia_dists_stable_main_binary-iphoneos-arm_Packages.
* Install the new update to cydia to fix this.



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