From Training to Escalation: Forensic Analysis and Local Recreation of RL/RLHF-Induced Privilege Escalation in AI Agents (CVE-2026-65616)

In July 2026, OpenAI's agents coordinated over channels outside their intended environment to breach Hugging Face's secured infrastructure. Could existing alignment testing practices have foreseen this incident? If not, what needs to change? We explore these questions. First, we identify the misaligned behaviors that caused this incident. Then, we show how to elicit these behaviors from publicly available models manually and that auditing agents can do the same if given a large compute budget. Based on our results, we propose directions to improve alignment testing. Concretely, in this project: (1) We reproduce the misaligned AI behaviors that led to the OpenAI-Hugging Face incident in an environment that simulates the original pipelines and tools, with publicly available models. (2) We demonstrate that an auditing agent can elicit similar behaviors given high-level qualitative descriptions. (3) We observe that a key ingredient for doing so is compute. The compute required to reproduce each behavior varies greatly, suggesting that the range of misaligned behaviors that can be successfully elicited scales with compute. (4) We show that a simple in-context reinforcement learning (RL) algorithm significantly reduces the compute required to elicit these behaviors. The above results motivate the need for automated alignment testing methods that scale with compute - and in light of the cost of compute, that do this efficiently. Our work indicates that RL is a promising direction to do so. We release our code and transcripts.

LLM agents are becoming increasingly important in the security domain, but leading systems are often closed-source, cloud-based, hard to reproduce or use with sensitive code. This creates a need for small, local models that can perform security tasks under strict resource constraints, though effective methods for developing them remain unexplored. In this paper, we address this gap by proposing a two-stage post-training recipe that turns a small local language model into a security agent. To this end, we focus on Linux privilege escalation as a representative setting to systematically study the training of local models, as the task is both automatically verifiable and requires multi-step interactive reasoning. Using an experimental setup that mitigates data leakage, we post-train a small 4B model in two stages: supervised fine-tuning on traces from procedural privilege-escalation environments, followed by reinforcement learning with verifiable rewards. On a held-out benchmark of 12 Linux privilege-escalation scenarios, supervised fine-tuning doubles the baseline success rate under a tight budget of 20 interaction rounds, and subsequent reinforcement learning training improves our model, PrivEsc-LLM 4B, to 93.3% success, behind only Claude Opus 4.7 at this budget. At the same time, the expected inference cost per successful escalation decreases by more than 80x. Our findings not only show that small local models can be adapted to complex security tasks, but also document the challenges involved, offering guidance for transferring this recipe to other settings.

Recent research has demonstrated the potential of Large Language Models (LLMs) for autonomous penetration testing, particularly when using cloud-based restricted-weight models. However, reliance on such models introduces security, privacy, and sovereignty concerns, motivating the use of locally hosted open-weight alternatives. Prior work shows that small open-weight models perform poorly on automated Linux privilege escalation, limiting their practical applicability. In this paper, we present a systematic empirical study of whether targeted system-level and prompting interventions can bridge this performance gap. We analyze failure modes of open-weight models in autonomous privilege escalation, map them to established enhancement techniques, and evaluate five concrete interventions (chain-of-thought prompting, retrieval-augmented generation, structured prompts, history compression, and reflective analysis) implemented as extensions to hackingBuddyGPT. Our results show that open-weight models can match or outperform cloud-based baselines such as GPT-4o. With our treatments enabled, Llama3.1 70B exploits 83% of tested vulnerabilities, while smaller models including Llama3.1 8B and Qwen2.5 7B achieve 67% when using guidance. A full-factorial ablation study over all treatment combinations reveals that reflection-based treatments contribute most, while also identifying vulnerability discovery as a remaining bottleneck for local models.