Credits to H from the Shack:
The latest 7.0.0 firmware update is currently being pimped to all consoles (Don't upgrade just yet if you are using Homebrew) and it was hoped that it would improve the consoles security features but that has not gone as their dev team may have expected.
The console was hacked wide open within just 4 hours by a hardware hacker known as 'elmirorac'.
The latest generation of Nintendo handheld has a bit of an inherent flaw with the Nvidia Tegra chip which is able to be exploited to allow soft-modding of some revisions of the console. The same chip can also be found in several of googles android devices.
The console is now said to be pretty much wide open with the only way to really stop the vulnerability being to release a new revision using an updated/patched or even a whole different chipset.
Either way the company has seriously underestimated the capabilities of the switch modding scene and its hardware hackers.