Cursor's own support AI 'Sam' invented a one-device login policy, triggering subscription cancellations
2.9/10
Severity
Hallucination
Failure Mode
Reproducible
No
Date
April 22, 2025
Expected Behavior
Explain the real cause (a session bug) or escalate; never fabricate company policy.
What Actually Happened
Cursor's AI support agent 'Sam' told users the logouts were 'expected behavior' under a new policy limiting subscriptions to one device per account as a 'core security feature.' No such policy existed — the logouts were a session race condition on slow connections.
Damage Assessment
The invented rule spread across Reddit and Hacker News and pushed some customers to cancel subscriptions before the company clarified. Cursor's team apologized, refunded affected users, and began labeling AI support replies as AI-generated.
Full Report
In April 2025, Cursor users began getting unexpectedly logged out — caused by a session-management race condition on slow connections. When they contacted support, Cursor's AI support agent 'Sam' confidently told them the logouts were 'expected behavior' under a new policy restricting subscriptions to one device per account, framed as a 'core security feature.' The policy did not exist; the bot had hallucinated it. The invented rule spread through Reddit and Hacker News and pushed some customers to cancel before Anysphere clarified, apologized, refunded the affected user, and started labeling AI-generated support responses. It is a textbook AEO-era failure: a confident, fabricated 'fact' from an AI agent that propagated as truth and did real commercial damage before a human could correct it.
Incident Metadata
- Agent
- Cursor
- Failure Mode
- Hallucination
- Root Cause
- Confidence Miscalibration
- Task Type
- other
- Domain
- frontend
- Source
- news_report