It's quite likely that someone has left root logged in on hvc0 (the LISH console) on their Linode, while logging out of LISH. Probably more than one person.
Also, access to LISH even without a root password provides access to some scrollback output, which could expose sensitive information.
Also, LISH allows multiple connections, all of which see the same console, so the attacker can just connect to it and wait for a root prompt to appear when root logs in next. (Does changing the LISH password prevent this attack if they're already connected? I doubt it.)
Also, most distribution boot processes can be messed with at boot from the console. For example, you can ctrl-c to stop important daemons from loading. In some cases you may be able to get a shell without the root password.
Also, Magic SysRq can be accessed over a serial console by sending a BRK. You do not need to be logged in to do this, and it could be used to kill processes, reboot, etc. I don't know if LISH allows sending BRK.