Same symptoms as this bug(http://askubuntu.com/questions/171449/shell-does-not-show-typed-in-commands-reset-works-but-what-happened) but happens with all commands rather than just one binary. 

Version: 8741.0.0 (local test build) on lulu
OS: ChromeOS test image

What steps will reproduce the problem?
Not sure, one or crosh shells get into a bad state with an arbitrary command. Once in the bad state, it is easy to clear it and reproduce it with 'reset' and 'cat /proc/modules' respectively. 

stty -a output: 
speed 38400 baud; rows 43; columns 166; line = 0;
intr = ^C; quit = ^\; erase = ^?; kill = ^U; eof = ^D; eol = <undef>; eol2 = <undef>; swtch = <undef>; start = ^Q; stop = ^S; susp = ^Z; rprnt = ^R; werase = ^W;
lnext = ^V; discard = ^O; min = 1; time = 0;
-parenb -parodd -cmspar cs8 -hupcl -cstopb cread -clocal -crtscts
-ignbrk brkint ignpar -parmrk -inpck -istrip -inlcr -igncr icrnl ixon -ixoff -iuclc -ixany imaxbel -iutf8
opost -olcuc -ocrnl onlcr -onocr -onlret -ofill -ofdel nl0 cr0 tab0 bs0 vt0 ff0
isig icanon iexten echo echoe echok -echonl -noflsh -xcase -tostop -echoprt echoctl echoke -extproc