> if something is running "native" on CM or some other code within a 
> virtual machine, it is safe from all other virtual machines?

The vulnerability is at the hardware level. Anything co-located on the same 
processor would be vulnerable to the technique. Since IBM won't say anything - 
not a great look for such a critical class of vulnerability - one can only 
extrapolate from other processor architectures, but hypervisor bypasses have 
been demonstrated.

> If the above is incorrect, is there an explanation somewhere as to how 
> the vulnerability works?
> 

https://www.raspberrypi.org/blog/why-raspberry-pi-isnt-vulnerable-to-spectre-or-meltdown/

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