Following news from earlier this month that anyone with a magnetic iPad 2 cover could break into even a passcode protected iPad 2, it appears that Apple has now addressed this with the latest iOS 5.0.1 beta provided to developers last night.
Apple has fixed the issue in an interesting way, by not allowing the iPad 2 to actually go to sleep using the Smart Display while the power off menu is being displayed. The final version of iOS 5 is expected to be publicly released in the coming weeks. In the meantime, check out the video below from 9to5Mac detailing the original issue:
