Washington ordered the shutdown of Fable 5 and Mythos 5 due to a jailbreak report. Anthropic has complied but strongly criticized the move, claiming it could stifle the entire AI sector.
By Shaurya Malwa Jun 13, 2026, 6:02 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- The U.S. government mandated Anthropic to cease access to its leading AI models, Fable 5 and Mythos 5, citing national security risks related to a potential jailbreak.
- In response, Anthropic has contested the order, asserting that the government provided only verbal claims of a limited vulnerability that is already known and can also be detected by similar models like OpenAI's GPT-5.5.
- Market reactions were unfavorable, as the Anthropic perpetual contract on Hyperliquid fell approximately 3.7%, raising concerns about the company's pre-IPO valuation and listing potential.
The U.S. government instructed Anthropic to halt its two most advanced AI models on Friday, resulting in an immediate decline in the pre-IPO market for its shares.
The perpetual contract for Anthropic on Hyperliquid, a cash-settled contract reflecting trader expectations of the company's equity pricing, decreased by 3.7% on Saturday, settling around $1,627, according to data.
This contract had previously been trading close to its peak, exceeding $1,800 shortly after the launch of Fable 5. The open interest for this contract is about $8.6 million, which is relatively modest compared to SpaceX's but significant for a firm that has yet to initiate an IPO.
Anthropic reported that it received the shutdown directive from the U.S. government at 5:21 p.m. ET on Friday, which mandated the suspension of all access to Fable 5 and Mythos 5 for any foreign nationals, both domestically and internationally. Following this, Anthropic executed a complete shutdown for all users.
The government indicated it had discovered a method to bypass, or jailbreak, Fable 5. In its review, Anthropic stated that the method described was narrow in scope, not a comprehensive jailbreak, and involved only a few minor vulnerabilities that were already known. The company noted that other publicly available models, including OpenAI's GPT-5.5, were capable of identifying these vulnerabilities without any need for a bypass.
Anthropic mentioned that the government had only presented verbal evidence of this potential narrow jailbreak, which it characterized as akin to asking the model to analyze a codebase and rectify software issues, a task routinely performed by defenders.
According to Anthropic, implementing this standard across the industry "would essentially halt all new model deployments for all frontier model providers."
With a focus on safety in AI development, Anthropic is now publicly contesting a national security directive, arguing that the evidence presented by the government does not meet its own established criteria.
The company is expected to provide further information regarding the specific jailbreak within 24 hours.
The cryptocurrency market is now viewing the shutdown as a setback for the company's IPO prospects, as reflected in the decline of the Anthropic perpetual contract from its post-launch highs. The primary concern for the company’s aspirations for a public listing is whether the government's order will be reversed, modified, or expanded to include additional model categories once Anthropic releases its technical counter-arguments.
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