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Security breach at Cursor enabled hackers to distribute malicious Claude Code extension

Cursor confirmed a security breach caused by stolen credentials from AI infrastructure provider Fireworks AI. This breach allowed hackers to distribute a malicious Claude Code extension through Cursor’s marketplace. The company is addressing the breach to protect its users and prevent further distribution of the malware.

Why it matters

The incident shows the risks of supply chain attacks in AI marketplaces, threatening developer tools and requiring strengthened security practices across the AI ecosystem.

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