OMFG I FOUND OUT A WAY!!!!!!
ok heres what you do to fix this:
1. In SSH, go to: var/lib/dgpk
2. Double-click on status-old and copy ALL script in there.
3. Create new file called: status
4. Paste all script into the file status
5. save and then now ON YOUR IPHONE go into terminal
type su and password is alpine
6. run these commands:
apt-get remove cydia
(Type in what it says to)
apt-get update
LASTLY!!!
apt-get install Cydia
Ive gotten this far and now have to Re-install all sources but hey atleast you didnt have to reinstall and jailbreak again!!
following your instructions I error out at 81% on istall 79% on trying to remove it and fatal error with apt-get update. Do you have a clean version on Cydia I shouls ssh in first before doing your fix?