2. CF assigns "semi permanent" nameservers like: bob.cloudflare.com
3. Attacker creates CF account and somehow gets assigned the same nameserver.
4. Once the domain expires, CF allows it to be assigned to a new CF account.
5. Domain comes back online with same nameservers.
6. Attacker adds domain to their CF account and now controls DNS because the nameservers stayed the same but CF allowed a new controlling entity.]
I butchered that explanation but whether that's a loophole, exploit or just an "issue" I'm glad it's solved.
CF says they now no longer allow previously used nameservers to be used again. The only problem with this is if someone swaps CF accounts hundreds/thousands of times and "runs out" of custom names.