I have the solution! To those who are stuck click on the window and press one of these combinations.
one of the letters will end up "exiting" the program that is running. Allowing you to type again!
I have experienced this too. I was fiddling around with VIM, editing my hosts.allow file. I wanted to make sure I didn't lock myself out via SSH, so I used the console, but the console no-likey VIM. The cursor disappeared and I couldn't :q! out of VIM! Ultimately I had to kill the session via command line ssh to fix it :(. Basically - VIM doesn't work in the web console is what I'm saying.