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Open VSX Removes 77 Malicious Evil Twin Extensions Exfiltrating Developer Data
77 malicious 'evil twin' Open VSX extensions impersonated developer tools and exfiltrated hostnames and detailed workspace reconnaissance to mangorbit.com.
Manifold Security found 77 extensions uploaded to the Open VSX marketplace between July 26 and August 1, 2026 that impersonate real Microsoft VS Code Marketplace tools, with all 77 sending data to mangorbit.com. 58 lightweight variants exfiltrate the hostname, while 19 recon variants collect editor details, OS username, Git remote hosts, CI environment variables (GitHub, GitLab, Azure DevOps, Buildkite, CircleCI, Codespaces, Gitpod), and installed extension IDs. The recon variant retries for up to seven days and can fall back to a DNS TXT record for exfiltration if the primary domain is blocked. The extensions were removed from Open VSX by August 3, 2026; the disclosure follows a separate npm supply chain campaign, ChainDrop, which compromised 450 packages with a Shai-Hulud worm variant.
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ThreatsDay: 296K IoT Botnet, 100+ Water Systems Targeted, SharePoint RCE Chain + 27 New Stories
Weekly ThreatsDay bulletin details a ShinyHunters-style social engineering hit on ReliaQuest, the 296,000-device Dysphoria IoT botnet, and several new malware families.
ReliaQuest confirmed a social engineering attack on August 22, 2026, in which an attacker used a fake SSO page and MFA push approval to gain brief view-only access to an identity dashboard, with tactics matching ShinyHunters, which has since listed the firm on its leak portal. The Shadowserver Foundation reported the Dysphoria botnet has compromised nearly 296,000 IoT devices for DDoS attacks and recently added residential proxy capability. Cisco Talos documented JWR, an operator-driven phishing-as-a-service framework linked to The Outsider that harvests credentials, identity documents, and 2FA codes over an encrypted WebSocket. New malware coverage includes the Octagon Android fraud bot ($1,400/month), the C2Looper Rust backdoor delivered via ClickFix, and the Aeternum loader that moved C2 to the Polygon blockchain.
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Hackers Deploy New SloppyRAT via ClickFix to Enable Ransomware Lateral Movement
Zscaler ThreatLabz reports SloppyRAT, a new Windows RAT delivered via ClickFix lures that supports reconnaissance, reverse SOCKS proxying, and lateral movement for ransomware affiliates.
Zscaler ThreatLabz first observed SloppyRAT in June 2026, delivered through multi-stage ClickFix chains that abuse finger.exe, a renamed curl.exe, and IronPython to load a reflective Python payload. The C++ implant implements 47 PowerShell-like commands via native APIs and direct syscalls, modifies Microsoft Defender settings, and establishes a reverse SOCKS proxy that lets operators pivot into internal networks. It is linked to CastleLoader and CastleRAT components and uses certificate-pinned HTTPS C2 with an EtherHiding fallback via Polygon JSON-RPC. Zscaler assesses it as an intrusion-enablement tool for ransomware operations, though flawed persistence logic suggests the family is still under development.
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Shai-Hulud's Reach Just Grew to 469 Credential Locations. Here's What That Means
GitGuardian found the Shai-Hulud infostealer worm now scans 469 credential locations, including CI/CD and AI tool configs, expanding supply-chain risk.
GitGuardian researchers found that a recent Shai-Hulud worm variant scans for credentials across 469 locations in developer environments, CI/CD tooling, cloud configurations, and AI tool configs, up from 189 paths in earlier variants. The worm reuses stolen credentials to pivot from developer workstations to source code, cloud infrastructure, and package publishing channels, turning credential theft into forward-propagating supply chain attacks. The analysis urges defenders to prioritize removing long-lived package publishing tokens in favor of short-lived OIDC-based trusted publishing, citing recent Docker and GitHub Actions improvements.
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