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What the AI actually did was test a mnemonic password he already had against thousands of files on his old computer. However, the headline just fueled the FUD in the minds of the ignorant.

Exactly!
Just to be clear with the phrasing, what he did was to test an old password on encrypted mnemonic files. The AI found the old encrypted file (the one before he made the password change). He actually should have deleted said old file, so he was saved by the same messiness that got him in this trouble from the start :P

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