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Anthropic’s Claim of Distillation Attacks on its Claude Models Builds Around Ongoing AI Supremacy 

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Anthropic has publicly accused three Chinese AI companies—DeepSeek, Moonshot AI, and MiniMax—of conducting large-scale “distillation attacks” on its Claude models.

Anthropic published a blog post titled “Detecting and preventing distillation attacks,” detailing what it described as industrial-scale efforts to illicitly extract Claude’s capabilities. The companies allegedly created approximately 24,000 fraudulent accounts bypassing terms of service and regional restrictions, as Claude is not officially available in China.

These accounts generated over 16 million exchanges i.e., prompts and responses with Claude. The technique involved distillation: training their own models on Claude’s outputs to transfer advanced capabilities like agentic reasoning, tool use, and coding.

Anthropic emphasized that distillation is a legitimate method; labs use it to create smaller versions of their own models, but called this usage “illicit” because it violated their terms of service, involved fraud, and aimed to shortcut independent development.

They highlighted national security risks: distilled models could lack safety guardrails; restrictions on bioweapons or cyberattacks, and if open-sourced, such capabilities could spread uncontrollably. Anthropic linked this to broader policy arguments, reinforcing the need for U.S. export controls on AI chips, as limited compute access hinders both direct training and large-scale distillation.

This follows similar accusations from OpenAI earlier in February 2026, which claimed DeepSeek and others distilled its models. Distillation is a standard technique in the field pioneered years ago and used widely, but the scale, use of fake accounts, and alleged TOS violations cross into prohibited territory for proprietary APIs like Claude.

Critics on platforms like Reddit and X point out irony: many frontier models including Claude were trained on vast public data, often raising copyright questions, yet companies now cry foul when their outputs are used similarly.

Some view it as geopolitical posturing—Anthropic and U.S. firms pushing back against rapid advances in Chinese open-source models that challenge closed Western frontiers. No immediate responses from the accused companies were widely reported in initial coverage, though the claims align with ongoing U.S.-China AI tensions.

Anthropic stated it is investing in better defenses like detection, rate-limiting and called for industry-wide coordination, including with cloud providers and policymakers. OpenAI made similar accusations against Chinese AI company DeepSeek, focusing on “distillation” techniques to replicate U.S. frontier models.

OpenAI sent a memo to the U.S. House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party often called the House Select Committee on China. They accused DeepSeek of ongoing efforts to “free-ride” on capabilities developed by OpenAI and other U.S. frontier labs through distillation.

DeepSeek allegedly used distillation — training its own models on outputs from more advanced U.S. models like those from OpenAI to replicate advanced capabilities at lower cost and faster. OpenAI reported detecting new, obfuscated methods to evade restrictions, including: Accounts linked to DeepSeek employees circumventing access limits.

Use of obfuscated third-party routers and other masking techniques to hide sources. Programmatic code developed by DeepSeek staff to access models and harvest outputs for distillation. This activity was described as part of broader, persistent efforts tied to China and occasionally Russia, continuing despite OpenAI’s defenses against terms-of-service violations.

OpenAI Highlighted Risks

Distilled models often bypass safety guardrails on misuse for bioweapons or cyberattacks, threatening U.S. technological leadership and national security. The accusations built on earlier suspicions from 2025, when DeepSeek’s R1 model launched and appeared strikingly similar to OpenAI’s outputs, prompting reviews of potential improper distillation.

OpenAI did not name Moonshot AI or MiniMax in its public disclosures unlike Anthropic’s broader accusations. The focus remained primarily on DeepSeek, with references to “other U.S. frontier labs” implying possible wider targeting.

These claims align with escalating U.S.-China AI tensions, including debates over export controls on advanced chips — which critics argue distillation circumvents by leveraging API outputs instead of direct training compute. Community reactions highlight irony: U.S. labs trained on vast public data; raising copyright issues, yet now decry similar use of their API outputs.

OpenAI framed this as a business and security threat, noting free or low-cost distilled models could undercut subscription-based Western frontiers.

US Stablecoin Regulation Shows Meaningful Progress in Negotiations over Rewards

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Recent developments in U.S. stablecoin regulation show meaningful progress in negotiations over stablecoin rewards, a key sticking point that has delayed broader crypto market structure legislation such as the CLARITY Act.

The White House has taken a more active role in mediating between banks and crypto firms, leading to a noticeable narrowing of differences. White House Crypto Council Executive Director Patrick Witt stated that the gap between the two sides has “shrunk considerably” following a closed-door meeting last week.

This comes after several sessions where the administration presented draft legislative text to bridge positions. The talks involve representatives from crypto entities like Coinbase, Ripple, and Andreessen Horowitz, as well as banking groups such as the American Bankers Association (ABA), Bank Policy Institute, and Independent Community Bankers of America.

Key Points of Progress and Compromise

Yield on idle balances is effectively off the table: Offering interest or rewards simply for holding stablecoins resembling bank deposits is no longer viable under emerging proposals. This addresses banks’ primary concern that such rewards could drive deposit outflows, reduce lending capacity, and create systemic risks.

Focus shifting to limited, activity-based rewards: The debate has narrowed to allowing narrowly scoped incentives tied to specific user actions, such as transactions, network participation, or other activities—rather than passive holdings. The White House has favored some form of these limited rewards and urged banks to accept them to advance the legislation.

Restrictions would be narrow in scope: Draft language acknowledges bank concerns from their “Yield and Interest Prohibitions Principles” but emphasizes targeted limits rather than outright bans on all rewards.

Officials aim to resolve this issue by March 1, 2026, to clear the path for Senate debate on the broader package. This dispute stems from earlier laws like the GENIUS Act, which regulates stablecoin issuance but prohibits direct interest from issuers—though third-party platforms have offered reward-like programs.

Banks view unrestricted rewards as competitive threats and potential loopholes, while crypto firms argue bans stifle innovation and favor incumbents.Attendees from recent meetings including a February 19–20 session described discussions as constructive and cooperative, with incremental alignment on language.

However, no final deal has been sealed yet, and some reports note that Polymarket odds for CLARITY Act passage dipped to around 44–55% in recent fluctuations amid ongoing Senate hurdles. The closing gap—driven by White House leadership—suggests momentum toward a compromise that balances innovation with financial stability concerns, potentially unlocking stalled crypto legislation soon.

With the White House actively mediating and the gap between banks and crypto firms narrowing significantly, a compromise appears increasingly likely by the stated March 1 deadline. This could have substantial ripple effects across the financial system, crypto innovation, consumers, and broader markets.

The emerging framework—banning yield and rewards on idle and passive stablecoin holdings to avoid direct competition with bank deposits while permitting limited, activity-based rewards tied to transactions, liquidity provision, network participation, or other user actions—would represent a balanced middle ground.

Reduced risk of significant deposit outflows, as passive yield-bearing stablecoins which could mimic interest-bearing accounts are effectively prohibited. Banks have argued this protects lending capacity, credit creation for small businesses, farmers, homebuyers, and overall systemic stability.

Preservation of core revenue streams from deposits and payments estimated in hundreds of billions annually, avoiding what some critics call a “hidden tax” on households via lower competition.

Continued ability to offer incentives for active usage helps maintain user engagement, platform growth, and competitiveness—key for recruitment and innovation without fully conceding to banks’ demands for a total ban.

Avoids stifling development or handing incumbents an unfair edge, as crypto advocates have warned. Platforms like Coinbase, Ripple, and others could sustain or expand reward programs; transaction-based loyalty incentives, supporting adoption without resembling traditional banking products.

Enhanced regulatory clarity reduces uncertainty, potentially increasing trust and mainstream adoption of stablecoins for payments and remittances. Avoids a scenario where broad bans limit consumer options in a high-inflation and affordability environment.

Resolving this logjam could accelerate CLARITY Act progress in the Senate, unlocking broader crypto market structure rules. Polymarket odds for passage have fluctuated recently dipping to ~44-55% amid delays but showing recovery potential with progress; a deal by March 1 could boost confidence and reverse downward trends.

Positive momentum for U.S. crypto competitiveness globally, reducing risks of innovation migrating offshore. Delays or failure could keep the CLARITY Act stalled in the Senate, prolonging regulatory uncertainty and hindering bipartisan digital asset legislation.

If banks prevail with stricter prohibitions, crypto firms face reduced incentives ? slower growth, lower user rewards, potential competitive disadvantages. If banks concede more, risks of deposit flight and lending pressures rise, though evidence of major impacts from current stablecoin adoption remains debated.

Ongoing uncertainty has already pressured sentiment; prolonged deadlock could dampen investor enthusiasm and slow stablecoin and capital inflows. The White House’s direct involvement and Patrick Witt’s optimistic comments suggest momentum toward a pragmatic compromise that prioritizes financial stability while allowing targeted innovation.

If achieved by March 1, this could trigger faster legislative movement and benefit both sectors in the long run—balancing competition with safeguards. However, the exact language on “activity-based” scope remains a final hurdle, with bank trade groups still gauging member support.

Crypto Fear & Greed Hits a Reading of 5 out of 100, Marking Lowest in History

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The Crypto Fear & Greed Index primarily tracking Bitcoin and broader crypto sentiment has hit a reading of 5 out of 100 in February 2026, marking its lowest level in history based on multiple sources tracking the index since its inception around 2018.

This extreme fear level anything below ~25 is “Extreme Fear” occurred multiple times this month: First on or around February 6, 2026, when Bitcoin bottomed near $60,000 during a sharp 52% drawdown from its all-time high of approximately $126,000 reached in late 2025.

It returned to 5 more recently (as of February 23, 2026, per alternative.me coinciding with renewed selling pressure. As of the latest available data: The index stands at around 8 still deep in Extreme Fear territory, up slightly from yesterday’s 5.

Bitcoin is trading in the low-to-mid $63,000 range around $63,000–$64,000, down significantly year-to-date roughly -25–28% amid ongoing outflows from U.S. spot Bitcoin ETFs, deleveraging in derivatives markets, liquidations, and broader risk-off sentiment influenced by macroeconomic factors like tariff uncertainties and geopolitical tensions.

Historically, such ultra-low readings; 5 has only appeared a handful of times: e.g., August 2019, June 2022, and now multiple points in February 2026 often signal capitulation — widespread panic selling where weak hands exit, sometimes marking local bottoms or setting up for strong reversals.

Analysts frequently view these as contrarian buy signals, with past extreme fear periods preceding violent rallies. However, the market can stay oversold longer than expected, and further downside remains possible if outflows and deleveraging continue.

This is a classic “blood in the streets” moment for crypto sentiment, but whether it proves to be the ultimate bottom depends on incoming catalysts like ETF flows reversing or macro improvements. Extreme fear doesn’t guarantee an immediate bounce, but it does indicate the market is pricing in a lot of bad news already.

This level reflects extreme capitulation — widespread panic, forced selling, and a near-universal bearish outlook among retail and leveraged participants. The index has rebounded slightly to around 8–11 still firmly in Extreme Fear territory.

It previously touched 5 multiple times this month; February 5–6 and again recently around February 23, marking the deepest sentiment low since the index began tracking in 2018. Bitcoin is trading in the low-to-mid $63,000 range down sharply from its late-2025 all-time high near $126,000 — a roughly 50%+ drawdown.

The market has seen prolonged extreme fear heavy long liquidations (hundreds of millions recently), ongoing U.S. spot Bitcoin ETF outflows, and macro pressures like renewed tariff uncertainties contributing to risk-off sentiment.

Extreme fear readings like this have often coincided with or preceded major market bottoms in Bitcoin’s history. Past examples include: June 2022 near 6–10 during Terra and Luna and broader bear market lows ? followed by a multi-year bull run.

Late 2018 early bear phases ? capitulation led to strong recoveries. Even milder fear dips (e.g., FTX collapse at ~12) marked local bottoms. A score this low suggests much of the “weak hands” have already sold, oversold conditions prevail, and bad news is largely priced in.

Many analysts view it as a classic “buy when others are fearful” moment (echoing Warren Buffett’s philosophy, which the index explicitly references). Some projections now target $150,000+ by end-2026 or higher in 2027 if a reversal materializes.

Potential for Further Downside (Risks Remain)

The market can stay irrational longer than expected. Extreme fear doesn’t guarantee an immediate bounce — it can persist or deepen if catalysts worsen. Technicals show Bitcoin testing key supports around $60,000–$63,000, with some bearish patterns suggesting possible extensions toward $50,000–$55,000 in a worst-case scenario before true capitulation ends.

High liquidation volumes mostly longs and “Bitcoin is dead” search spikes indicate peak panic — often the point where smart money accumulates quietly while retail exits. Low sentiment can lead to explosive upside once sentiment flips via positive ETF inflows, macro relief, or halving cycle momentum carryover.

On-chain and analyst data suggest long-term holders are still buying dips, not selling — a bullish divergence amid the fear. Technical breakout above recent resistance like $67,000–$70,000. Even a modest uptick in the index as seen from 5 ? 8–11 recently can snowball if paired with price stability.

A Fear & Greed Index at 5 is one of the strongest contrarian indicators in crypto — historically screaming “oversold” and often marking inflection points. However, it’s not foolproof; timing bottoms is notoriously hard, and patience may be required amid ongoing volatility.

This remains a high-risk, high-reward environment — always do your own research, manage risk, and avoid over-leveraging. If history is any guide, these “blood in the streets” moments have rewarded those who stay disciplined through the fear.

Bitcoin Price Dipped During Asian Trading Amid Altcoins Weakening Metrics

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Bitcoin (BTC) briefly dipped below $63,000, amid mounting liquidations and a broader risk-off sentiment in global markets. This move extends a correction that has been ongoing for much of the month, with BTC approaching levels last seen earlier in February around $60,000.

BTC fell below $63,000 during Asian trading hours, with lows reported around $62,700–$62,900 in some sources, its currently trading around $64,437 according to CoinGecko data. It has since recovered slightly, trading in the low-to-mid $63,000 range around $63,000–$63,200 in recent updates, with some snapshots showing ~$62,900–$63,000.

24-hour declines hovered around 4–5%, contributing to weekly losses of roughly 7–8%. Leveraged liquidations surged significantly, with figures ranging from $360–$380 million in the past 24 hours primarily long positions being wiped out. Some reports noted higher cumulative impacts in the broader correction.

The selloff appears driven by a combination of factors: Macro uncertainty, including tariff-related headlines and shifting risk appetite affecting speculative assets like crypto. Broader market anxiety, with correlations to equities and a stronger dollar pressuring risk-on trades.

Technical breakdowns, such as failing to hold key supports around $67,000 earlier, leading to accelerated unwinding of leveraged bullish bets. Additional pressure from large transfers, like a reported $114 million BTC dump to Binance by an entity, and miner selling.

The total crypto market cap has shed value estimates around $150 billion in some reports during the dip, with altcoins like Ethereum, Solana, and others also declining. Analysts note that a sustained break below $60,000 could trigger more liquidations and potentially test lower supports; $52,500 in some technical views, though on-chain indicators suggest this may be part of a bottoming formation—though patience will be required for any meaningful recovery.

Ethereum (ETH) has been significantly impacted by the broader crypto market downturn, mirroring Bitcoin’s brief dip below $63,000. As a high-beta asset often more volatile than BTC, ETH has experienced sharper declines amid mounting liquidations, risk-off sentiment, and macro pressures like tariff uncertainties and a stronger dollar.

ETH is trading around $1,850 range today with real-time quotes from major source like CoinMarketCap showing: 24-hour decline of approximately 4–5.5%, contributing to weekly losses in the 7–10% range. Year-to-date, ETH is down roughly 38%, marking one of its weakest starts to a year on record, with prices well below recent ranges and testing key supports near $1,800.

This follows a slide from mid-$1,900s earlier in the month, with ETH now hugging the lower end of a descending channel on daily/weekly charts. ETH tends to amplify BTC moves. BTC’s drop below $63K; lows ~$62,700–$62,900 set the tone for risk assets, leading to correlated selling across the board.

Analysts note ETH as a “higher-beta proxy” for on-chain activity, making it more sensitive to sentiment shifts. Total crypto liquidations reached $360–$600 million in the past 24 hours with some reports citing up to $700M cumulatively in the correction, predominantly long positions (70–90%).

ETH-specific liquidations were substantial, e.g., $95–$126 million in futures and perps, accelerating the downside as forced unwinds cascaded. Macro uncertainty has reduced risk appetite. On-chain factors like Vitalik Buterin-linked sales added short-term selling pressure, though not fundamentally altering Ethereum’s ecosystem strength.

ETH is testing critical support around $1,800 (a horizontal demand zone and lower channel boundary). A sustained hold could lead to a relief bounce toward $2,000–$2,200, but a break lower risks deeper targets like $1,500–$1,600 or even $1,750 in bearish scenarios.

Despite the pain, some positive undercurrents persist: Ethereum’s dominance in DeFi TVL remains strong ~55–60% historically, with protocols like Aave, Uniswap, Morpho, Ethena, and Ether.fi continuing to grow. On-chain activity and potential institutional interest suggest long-term upside, with analysts viewing sub-$2,000 levels as rare buying opportunities in a multi-year horizon potential recovery to $3,000–$5,000+ if catalysts align.

Sentiment is in “extreme fear” (Fear & Greed Index ~8–14), often a contrarian signal for exhaustion and future rebounds. Crypto remains volatile, with ETH highly reactive to BTC’s trajectory—if Bitcoin stabilizes above $63K and macro fears ease, ETH could see outsized recovery.

This appears to be an extension of February’s choppy correction rather than a structural breakdown. Crypto remains highly volatile, and sentiment indicators like fear levels are elevated.

The Premier League Managerial Merry-Go-Round: Who Could Be Next to Go?

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January in England has a particular sound: studs on slick grass, floodlights humming, and the low buzz of a club statement waiting to be typed. The Premier League never really “settles.” It simply pauses between matchdays long enough for boardrooms to rehearse their patience.

This season’s title race and relegation fight have both tightened the screws, and the modern manager is judged in public, in real time, on multiple screens at once. A bad half isn’t just a tactical problem; it’s a trending topic.

The Table Never Sleeps

A league campaign is supposed to be a long argument, a slow accumulation of evidence. In practice, the winter calendar turns it into a weekly trial. Arsenal’s early-January position at the top has underlined the gap between calm planning and sudden panic elsewhere, while the chasing pack keeps the pressure hot: a point dropped on a rainy night can feel like a season slipping away.

That is the managerial paradox. At the top, every draw is treated like a warning sign. At the bottom, every defeat is treated like a verdict. In between, the so-called “safe” teams are one bad run away from discovering they were never safe at all.

When a Club Statement Becomes the Matchday Headline

The 2025-26 season has already shown how quickly a reputation can turn. Chelsea’s decision to part company with Enzo Maresca on New Year’s Day was a reminder that even a club sitting in the European places can decide the mood has turned sour. Not long after, Manchester United announced Ruben Amorim’s departure, and the message was unmistakable: time is a currency clubs spend fast when the noise grows loud.

These are not small calls made on a whim. They are expensive, disruptive choices that reset training rhythms, staff hierarchies, and dressing-room politics. They also reveal something quietly brutal: modern clubs often prefer the turbulence of change to the slow pain of waiting.

Relegation Fear Writes the Harshest Scripts

If you want to know where the next sacking might come from, start with the maths. Relegation is not just sporting failure; it’s a financial earthquake. That’s why the bottom of the table is where boards reach for the emergency lever.

Wolves have lived inside this reality all season. Their early months were defined by a winless start that became historic for the wrong reasons, and even after finally securing their first league win, the numbers still indicate a team struggling for goals. Burnley’s problems have been different but equally unforgiving: conceding at a rate that turns every game into a rescue mission.

West Ham offers another version of the same stress. A club with a big stadium, a demanding crowd, and European memories cannot drift for long without consequences. They already moved once this season by changing head coach, and that’s the point: once you’ve pulled the trigger, every later wobble feels worse, because you’ve told everyone you’re willing to do it.

The Thin Line Between Plan and Panic

Some clubs don’t sack managers because they’re terrible. They sack them because the story has gone stale.

Tottenham’s campaign has been shaped by the kind of injuries that hollow out a team’s identity. When key creative players are absent for months, the football can look like a sketch of itself, with the same shirt but less colour. Chelsea’s issues in the final third have been framed in similar terms, with questions about variety and chance creation recurring.

At the other end of the spectrum, Arsenal’s depth questions show how even the leaders are not immune to fragility. A title bid is often decided not by brilliance but by whether your midfield survives the winter.

The New Pressure Cycle

The managerial merry-go-round now spins in an ecosystem where fans experience matches as a live feed of probabilities. Odds updates, stat overlays, and social reactions arrive in the same moment as the corner kick.

On platforms like MelBet, supporters follow markets as closely as team news, treating late injury updates and tactical shifts as information that changes the emotional temperature of a match. A good in-play moment feels sharper when it’s paired with a decision you’ve made yourself, and the experience becomes interactive rather than passive.

Many fans treat this as part of the broader entertainment layer: checking a price, comparing a line, and then returning to the game. It’s the same habit loop that powers highlight culture: quick hits, quick judgments, quick debate. For many users, a single matchday session might include sportsbook browsing, live streams, and even a glance at casino tunisie options, all on the same phone before the next whistle.

That speed cuts both ways. It adds excitement, but it also amplifies impulse. The healthiest version of this culture is the one that stays disciplined: set limits, keep it recreational, and never let a bad run of results push you into chasing.

Pressure Points, Not Prophecies

Predicting sackings is a fool’s game, because boards don’t just react to results; they react to atmosphere. Still, patterns repeat.

Clubs in the relegation zone are the obvious candidates, especially if performances look flat rather than unlucky. If a team is conceding heavily, creating little, and showing no tactical evolution, the board starts to believe the “new voice” theory. That is how short-term thinking sells itself: one appointment is framed as a jolt rather than a plan.

The next tier of danger is the club with expectations that don’t match the football. A side stuck in a long winless run, or a team that looks physically drained by its own style, can find itself in crisis even without being near the drop. The Premier League’s attention economy punishes boredom as much as failure.

The least obvious risk is the big club that isn’t collapsing, just drifting. In those environments, the manager becomes the face of every unanswered question until the easiest way to “do something” is to change the coach.

The January Window

January is not only a transfer window; it’s a reality check. Clubs can patch weaknesses, change the mood, and buy time. They can also overreact, throw money at problems, and discover the deeper issue was cohesion all along.

For managers, the message is simple: survive the month and you often earn breathing room. Lose two key matches, and the speculation becomes louder than the analysis. In a league where every weekend is televised, clipped, memed, and debated, the merry-go-round keeps turning.

The only real prediction worth making is this: the next coach to go won’t be chosen by one result. They’ll be chosen by a feeling that spreads first in the stands, then online, and finally in the meeting where the word “inevitable” is said out loud.