Cursor, the AI-powered code editor, is facing a user revolt after its AI support bot falsely told users that a new policy restricts logins to a single machine. The hallucination led to dozens of public subscription cancellations before the company clarified the issue was a backend session bug.

The confusion began when users noticed they were being forcibly logged out after switching devices. When they contacted support, an AI agent responded that this was “expected behavior” under a new login policy. The response spread quickly on Reddit and Hacker News, with many developers expressing outrage over what they saw as an anti-user restriction.

Cursor developer mntruell posted on Reddit that the company has “no such policy” and that the response was an “incorrect response from a front-line AI support bot.” They said there is no such policy and that they are investigating session invalidation issues. Despite the clarification, several users in the Reddit thread said they had already canceled their subscriptions and named alternatives like Augment Code and Roo Code.

The incident highlights the risks of deploying AI in critical customer-facing roles. As one Hacker News commenter put it, there is “a certain amount of irony” that companies downplaying the significance of hallucinations are directly harmed by them. The original Reddit post was locked and deleted, leaving the community without a formal resolution from the company.