If you search the market for "Jackeey" you'll get several dozen wallpaper apps. I think the article is treating all of them as a single app, which explains the "1.1 to 4.6 million" downloads: they just added up the lower and upper bounds of the ranges for each individual app. And as I said above, they don't appear to be requesting permissions that would let them do most of the nasty things described.
The article doesn't mention which app was malicious however they did mention that the app publisher went by the name of "jackeey,wallpaper".
I ran some queries and it seems like the developer that publishes apps under "jackeey,wallpaper" also publishes under "jackeey.wu".
A list of the apps published by this developer are here (most of which are wallpaper apps):
http://andbot.com/developer/jackeeywallpaper
http://andbot.com/developer/jackeey-wu
http://andbot.com/developer/jackeeywu