https://en.wikipedia.org/wiki/+++ATH0#Hayes'_solution

What was patented was the technique of checking for a delay of about a second to separate the command from any data. It still had to be sent from the local side of the connection, so the exploit needed some way to get it echoed back (like ICMP).

More relevant to this bug: https://en.wikipedia.org/wiki/ANSI_bomb#Keyboard_remapping

DOS had a driver ANSI.SYS for interpreting terminal escape sequences, and it included a non-standard one for redefining keys. So if that driver was installed, 'type'ing a text file could potentially remap any key to something like "format C: <Return> Y <Return>".