Executive Summary

In late 2025, researchers at Koi Security identified a vulnerability across several AI-powered IDEs forked from Microsoft Visual Studio Code—including Cursor, Windsurf, Google Antigravity, and Trae—whereby hardcoded lists of "recommended" extensions pointed to namespaces that were unclaimed in the OpenVSX extension registry. Threat actors could exploit this by registering these namespaces and publishing malicious extensions, leveraging user trust in built-in recommendations. The risk affected any developer using these IDE forks, potentially opening the door for supply chain malware. After reporting, project maintainers began removing vulnerable recommendations and placeholder, non-functional extensions were uploaded to block exploitation. No evidence of active malicious abuse was found prior to remediation.

This incident underscores the growing risk of software supply chain attacks, particularly via open-source repositories and trusted platform recommendations. As more AI-powered tools automate software development environments, attackers are increasingly targeting overlooked dependency and plugin ecosystems, forcing organizations to enhance extension and third-party controls.

Why This Matters Now

Supply chain vulnerabilities in developer tools can be weaponized quickly as development platforms become more automated and reliant on registries. The incident is a clear warning that trust in recommended integrations must be backed by strong registry governance and verification, especially given the proliferation of open-source forks and AI-driven dev environments.

Attack Path Analysis

MITRE ATT&CK® Techniques

Potential Compliance Exposure

Sector Implications

Sources

Frequently Asked Questions

The incident exposed gaps in supply chain security, registry governance, and extension validation—particularly areas concerning zero trust segmentation, visibility, and policy enforcement for third-party integrations.

Cloud Native Security Fabric Mitigations and ControlsCNSF

Applying Zero Trust segmentation, egress controls, and real-time threat detection would have restricted the unauthorized installation and activity of malicious extensions, limited their access within the environment, and prevented or identified suspicious outbound traffic indicative of compromise.

Initial Compromise

Control: Cloud Firewall (ACF)

Mitigation: Malicious extension downloads can be blocked based on reputation, FQDN, or threat signatures.

Privilege Escalation

Control: Zero Trust Segmentation

Mitigation: Extension processes are isolated from broader data and network scope.

Lateral Movement

Control: East-West Traffic Security

Mitigation: Unauthorized lateral communications are detected and blocked.

Command & Control

Control: Egress Security & Policy Enforcement

Mitigation: C2 traffic is blocked or flagged for investigation.

Exfiltration

Control: Threat Detection & Anomaly Response

Mitigation: Suspicious data flows and exfiltration attempts prompt alerting and response.

Impact

Control: Cloud Native Security Fabric (CNSF)

Mitigation: Automated response isolates affected workloads and enforces integrity controls.

Impact at a Glance

Affected Business Functions

  • Software Development
  • Application Security
  • IT Operations
Operational Disruption

Estimated downtime: 0 days

Financial Impact

Estimated loss: $0

Data Exposure

Potential exposure of source code, developer credentials, and sensitive project information due to installation of malicious extensions.

Recommended Actions

  • Implement cloud firewall egress filtering to block downloads of untrusted or suspicious marketplace extensions.
  • Enforce Zero Trust segmentation to restrict extension and IDE processes to strictly necessary data and network resources.
  • Monitor for anomalous outbound traffic and rapidly respond to threat activity detected within developer environments.
  • Apply east-west traffic controls to prevent unapproved internal lateral movement from compromised workloads.
  • Automate extension and plugin governance by maintaining explicit allowlists and reviewing publisher reputations regularly.

Secure the Paths Between Cloud Workloads

A cloud-native security fabric that enforces Zero Trust across workload communication—reducing attack paths, compliance risk, and operational complexity.

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