I thought "/shurdles" problem was to be solved via "chroot".
But the way the challenge was designed, it's more about just changing argv[0] rather than the actual executable path.
The binary was not setuid, but was only executable (not readable) by the user used.
Ah, then ptrace/gdb could have been used to dump it out as well :). Looks like a fun CTF, too bad I was too busy for bsides this year..
It's been a long while since doing basic linux administration. I am getting rusty.