App host Vercel says it was hacked and customer data stolen

Cloud hosting platform Vercel suffered a supply chain breach when an employee downloaded a compromised Context AI application, allowing hackers to access unencrypted customer credentials, API keys, and potentially source code through OAuth authentication hijacking. The incident highlights critical vulnerabilities in third-party software integrations and OAuth trust relationships, with Vercel warning of potential downstream breaches affecting hundreds of users across multiple organizations. This attack represents a growing trend of supply chain compromises targeting developer infrastructure to gain broad access across the technology ecosystem.