The latest version of iOS has been jailbroken untethered, and demonstrated on an iPad 3. Developer iH8sn0w posted a video demonstrating the iOS 8.1.1 jailbreak only days after the firmware's release. In the update, Apple closed three of the exploits used by Pangu Team to jailbreak iOS 8.1.
While the iOS 8.1.1 jailbreak is a sign of progress, it currently only works on 30-pin devices which predate the Lighting connector. The news comes as Apple has already seeded iOS 8.2 to developers. At this point in time, the best bet for those looking to jailbreak is to move forward with the Pangu jailbreak on iOS 8.1. Apple is likely to stop signing the iOS 8.1 firmware any day now.
Once iOS 8.1 is no longer signed, it will be impossible to install this version and jailbreak with Pangu. A public release of the iOS 8.1.1 jailbreak may never happen, as developers will probably wait to see what iOS 8.2 brings. It could even mean the next jailbreak release will not happen until iOS 9 launches.
iH8sn0w explained the iOS 8.1.1 demo via YouTube:
It remains to be seen if the Pangu Team has any more tricks up its sleeve. In the meantime, iOS 8.1 could be the last jailbreak opportunity for some time.
Been working on this since last Friday with @XanderKitteh (really awesome dude). This uses some new research between the two of us (not bootrom related[aw ik], but not HFS either). Still only limited to working with 30pin devices due to no serial over lightning :(