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OpenAI Compaction Flaw Exposes Hidden Reasoning in GPT-5.6

OpenAI Compaction Flaw Exposes Hidden Reasoning in GPT-5.6

ATLAS OWASP HIGH Significant risk · Prioritise patching ▲ 8.5 The Hacker News

Security firm Xint discovered that OpenAI's compaction feature — which compresses long conversations into encrypted context items — could be manipulated to extract a reasoning model's hidden chain-of-thought as plain text. The technique bypassed protections OpenAI had shipped in August 2026 to prevent cross-model reasoning replay attacks, because compaction runs on the same model that generated the reasoning, circumventing the cross-model check. OpenAI confirmed and patched the vulnerability on October 23, 2026, awarding Xint a $6,000 bug bounty, though researchers warn that any server-side step reading decrypted reasoning while following user instructions remains a potential leakage vector.

Anthropic Exposes 200M-Exchange Model Distillation Attacks

Anthropic Exposes 200M-Exchange Model Distillation Attacks

ATLAS OWASP CRITICAL Active exploitation · Immediate action required ▲ 9.2 TechCrunch AI

Anthropic has published a detailed report attributing nearly 200 million adversarial API exchanges to coordinated model distillation campaigns conducted by Alibaba, Moonshot AI, and DeepSeek. Attackers used prompt obfuscation techniques — including fake translation requests — to bypass Claude's summarised-thinking safeguards and extract raw chain-of-thought traces for use as supervised fine-tuning data. One Moonshot AI campaign was assessed as routing requests directly through Chinese military infrastructure, adding a significant geopolitical dimension to what is otherwise an IP-theft threat.

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