Instinct denies data leak after hallucination scare, rolls out token-level hallucination detection

mon__lim · x · 2026-09-24

After a user claimed Instinct described someone else's financial document and a photo that wasn't theirs in their chat, founder Noah Shinn said the incident was a hallucination — the model fabricated a proper noun amplified by its causal thinking trace — not a data breach, and no user isolation boundary was violated. He detailed existing partitioning measures (isolated sandboxes, short-lived local credentials, identity-signed tool execution) and said the team built an active hallucination detection system in 48 hours that scans and verifies every token via small models trained to catch ungrounded claims.

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