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Researchers discovered a vulnerability where encrypted reasoning state from proprietary LLM APIs can be stolen by replaying blobs across users and having smaller models decrypt the traces

The core bug sounds deceptively simple: providers return encrypted reasoning state so conversations can be resumed or forked. But those blobs can be replayed across users and sibling models. A smaller model can ask the provider to decrypt the trace, then repeat the hidden reasoning in plain text.
Machine Learning Street Talk28 Aug 2026

https://podcasters.spotify.com/pod/show/machinelearningstreettalk/episodes/Stealing-Reasoning-Traces-from-Proprietary-LLM-APIs--Ilia-Shumailov--Alexander-Panfilov-e3nonlk