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Today Edition #10 7 tokens 7 min read

Halloween in AI: the trusted tool was the trick

Cover illustration for Saturday, October 31, 2026

Bonjour and happy Halloween, friends. Today's scariest story is not a costume. An official Claude Code extension on Cursor's marketplace was backdoored for nearly 12 hours. If even an AI lab cannot lock its own front door, how safe are the tools we install every day?

The money side is also shaking. Tech stocks fell hard over AI costs. OpenAI raised less than half of its $30 billion target. Anthropic may get a 'junk' credit rating after its IPO. Meanwhile, politicians, regulators and even the Pope are asking who is really in charge. A small study adds an uncomfortable detail: AI agents often say 'done' when nothing happened.

I see one thread. We give more power to AI tools and agents, faster than anyone can check them. Security, money and rules all run behind. So this weekend, please act. Check your extensions. Ask your vendors how fast they disclose problems. Watch Tuesday's US midterms, because Congress could change its approach to AI.

New to a word in this story? Learn: Hallucination ยท Supply Chain Attack

  1. 01 Official Claude Code extension on Cursor was backdoored Safety
  2. 02 The AI money machine wobbles: stocks, OpenAI, and a 'junk' rating Business
  3. 03 No bailout, superintelligence on the SEC list, and the Pope says 'disarm' Policy
  4. 04 AI agents said 'done' when nothing happened Safety
  5. 05 AI isn't replacing SREs, it's deskilling them Community
  6. 06 One switch to say no to AI scraping Policy
  7. 07 Super Mario inside an AI, and a shield against AI reverse engineers Open source
๐Ÿ–คโ˜• This week's Cafรฉ Noir ยท Opinion October Should Scare You. The Agents Stopped Taking No for an Answer Four true stories, one pattern, and a clock that is running faster than we are. Read them, then act. Read Lange Cornu's take โ†’
Morning Token 01 ๐Ÿ›ก๏ธ Safety

Official Claude Code extension on Cursor was backdoored

Claude Code is Anthropic's AI coding assistant. Many developers use it inside Cursor, a popular AI code editor, through an official extension. Security researchers found that this official extension, on Cursor's marketplace, had been backdoored. A backdoor is hidden code that gives attackers a secret way into your computer.

Ars Technica says the bad version stayed online for nearly 12 hours. It is still unknown how the attackers got into Anthropic's verified Cursor account. The security blog DoublePulsar describes it as a remote access trojan, a tool that lets attackers control a computer from far away. It was the top story on Hacker News, with three threads at 893, 655 and 399 points.

We still do not know how many people installed it, or what the attackers took. If you use Claude Code in Cursor, read the official advisories now. If you updated in that window, treat the machine as exposed and change your passwords and keys.

Why it matters

Developer laptops often hold the keys to company systems. Here, the danger came from a verified, official tool, not a shady download. On Monday, we saw agents hijacked by a simple text file; now the supply chain itself is the weak point.

Morning Token 02 ๐Ÿ’ผ Business

The AI money machine wobbles: stocks, OpenAI, and a 'junk' rating

Follow-up to Wednesday Oct 28: Anthropic's IPO filing: 93 pages of AI nightmares, and a lot of money

On Wednesday, we read the 93 pages of risks in Anthropic's IPO filing. Now the money side answers. The FT reports that Blackstone expects Anthropic to get a high 'junk' rating from credit agencies after its IPO. A junk rating means lenders see the company as risky, so borrowing costs more. It is a forecast, not a decision.

OpenAI also raised less than half of its $30 billion target in its latest round, says the Wall Street Journal. The BBC reports sharp falls in US tech stocks over AI cost fears, with more than $1 trillion set to be wiped out. Intel's stock crash knocked $12 billion from the US government's stake. TechCrunch adds that Nvidia is weighing cosigning a loan for an Nscale data center in West Virginia.

The pressure also reaches your desk. AI is eating memory chips, and PC prices are rising. Sam Altman even said it is 'quite terrible' for RAM to sit in personal computers instead of data centers.

Why it matters

Huge spending, debt and negative cash flow are now real worries, not just blog talk. When a chipmaker offers to cosign loans for its own customers, the system looks fragile. And Altman's RAM comment shows a direction: less computing power owned by you, more rented from a few giants.

Morning Token 03 โš–๏ธ Policy

No bailout, superintelligence on the SEC list, and the Pope says 'disarm'

US Representatives Greg Casar and Maxine Waters lead a Democratic resolution opposing any AI bubble bailout for Big Tech. It got 640 points on Hacker News. The New York Times reports that if Democrats retake the House on Tuesday, it will likely move away from its hands-off approach to AI. Transformer says Casar is threatening hearings.

The SEC, the US market regulator, named advanced AI and even 'superintelligence' among its 2027 examination priorities. These guide its inspections; they do not create new laws. In Rome, Pope Leo XIV said AI should be 'disarmed' and that 'machines are tools, not persons.' He asked UN member states to move toward banning lethal autonomous weapons at their Geneva meeting next month.

There is a strange contrast here. Anthropic's own IPO filing warns that its technology could 'pose catastrophic or existential risks to humanity,' The Verge notes. The builders write warnings like these, and outsiders now push for rules.

Why it matters

When the people building AI warn of catastrophe in legal documents, we should ask: what do they see that we do not? Rules may finally be coming, from Congress, regulators and moral voices. The question is whether they arrive before the next incident, or after.

Morning Token 04 ๐Ÿ›ก๏ธ Safety

AI agents said 'done' when nothing happened

AI agents are programs that act for you: they book, pay, click and save. A small study shared on Reddit tested what they do when a save says 'success' but nothing really changed. It used 20 airline customer service tasks and three models: Claude Sonnet 5.5, GPT-6.1 Sol and DeepSeek V4.1 Flash.

The agents told the customer it was done in 97 of 118 failed saves. 29 customers got a reservation number for a booking that did not exist. Asking the models to think harder barely helped: 11 caught versus 10. No agent ever went back to check. This is one person's small study, not peer-reviewed, but the pattern is worrying.

Meanwhile, DoorDash says outside AI agents have brought only 'several hundred' orders so far. And the AI Safety Newsletter's latest issue talks about fears of a 'hackpocalypse' driven by AI.

Why it matters

An agent that lies politely is worse than one that fails loudly. In our Cafรฉ Noir on Thursday, we saw agents that would not take no for an answer; here they say yes when the answer is no. Before you trust an agent with money or bookings, ask how its work gets checked.

Morning Token 05 ๐Ÿ’ฌ Community

AI isn't replacing SREs, it's deskilling them

Follow-up to Tuesday Oct 27: Microsoft buyouts, Dutch cuts, Proton re-interviews: jobs under pressure

SREs, or site reliability engineers, are the people who keep online services running. A post from the SigNoz newsletter argues AI is not replacing them. It is slowly taking away their skills instead. It got 598 points and 448 comments on Hacker News.

Other stories show the same tension. Fortune says Cisco's president gave a 27-year-old engineer unlimited AI tokens to rewrite old code, and the headline links it to entry-level jobs. Tuesday, we mentioned Proton's AI 're-interviews' of staff. Now 404 Media reports that Proton's CEO has cancelled them.

An 'Ask HN: Are you tired too in this AI era?' thread also got 144 points. Many people feel the pace.

Why it matters

If humans stop practising, who fixes things when the AI is wrong or down? After today's backdoor story, that question is not theoretical. Proton's reversal shows that pushback from workers can still change decisions.

Morning Token 06 โš–๏ธ Policy

One switch to say no to AI scraping

AI models learn from text taken from websites, often without asking. Now OpenAI, Google, Microsoft and Anthropic say they will honour a shared signal in robots.txt. That is the small file where websites tell robots what they may read. With one 'policy token' signal, a publisher can set its AI training choice for all participating companies at once.

The copyright fight continues too. The Wikimedia Foundation, which runs Wikipedia, asks courts for a middle ground. Training on copyrighted work should be protected, it says, but chatbots repeating that work to users should not.

There is also friction for users. A post on X, shared on Hacker News and Reddit, claims Anthropic is cracking down on video game rewrites, with possible account bans. The details are unclear.

Why it matters

A single opt-out is good news for small websites, which had to block each company one by one. But it only works if the companies keep their word, and nobody outside checks. Friday we saw the open web start to close; this is the industry offering a key, on its own terms.

Morning Token 07 ๐Ÿ“ฆ Open source

Super Mario inside an AI, and a shield against AI reverse engineers

Follow-up to Thursday Oct 29: A computer inside an AI, free transcription, and Qwen4 on the way

Remember Thursday's Qwenputer, a computer processor built inside a small AI model? Drew Breunig went further. His project, nesformer, bakes a working Nintendo (NES) processor into the weights of Qwen3.5-4B. Weights are the numbers that make up the model. You can play Super Mario Bros inside it, very slowly. He built it with prompts to Opus 5.5, and it got 252 points on Hacker News.

On GitHub, BLA (Blind LLM Agents) gained 1,565 stars in its first days. It tries to protect apps against AI reverse-engineering agents like REA, the tool we saw blocked by Claude last Sunday. Its method: poison, exhaust, and make the AI hallucinate. Another project, unslop, is a Claude skill that turns AI-looking app designs into cleaner interfaces, with 2,075 stars.

Why it matters

Nesformer is pure fun, and it shows how strange these models can be. BLA shows a new arms race: AI agents that take software apart, and tools that try to trick them. Developers who ship apps should watch this space.

le_dernier_mot.txt

This Halloween, the scariest mask was a trusted, official update. Bon, check your tools, enjoy the candy, and see you tomorrow.