Linux KVM, the hypervisor favoured by hyperscale clouds, apparently has a full VM escape bug. That nasty news came from security researcher Paulos Yibelo, who on X shared a screenshot of a bug bounty award he won for discovering what he described as “Full VM escape zeroday (guest>host root in industry standard hypervisors)!” The bug bounty Yibelo participated in is run by Vercel, a company that provides MicroVMs as sandboxes for AI agents to work inside. The company’s Sandbox uses Firecracker MicroVMs, a technology created by AWS, which relies on Linux KVM – the kernel level hypervisor in Linux. Vercel CEO Guillermo Rauch named KVM as the hypervisor identified by Yibelo. “We’ve confirmed a KVM 0day through our Vercel Sandbox bounty program. Affecting the industry’s gold standard…