It indicates an attacker attempted a Buffer Overflow attack against Xchat. Xchat is a freely available IRC (Internet Relay Chat) client that is vulnerable to a Buffer Overflow. This stack based overflow is caused because there is a lack of proper bounds checking of the Socks-5 proxy code. This could allow an attacker to overflow the buffer and execute arbitrary code.
X-Chat X-Chat 2.0.8 and earlier versions.
Compromise of the affected system.
Apply appropriate patch from the vendor or Upgrade to non-vulnerable version if available.