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The online “funhouse mirror” distorting everyone’s reality

Tiny numbers of “toxic” accounts can have massive, outsize negative effects for all.

A small, vocal minority is distorting our view of what’s normal online. That’s the conclusion of a new paper from researchers at New York University, “Inside the funhouse mirror factory: How social media distorts perceptions of norms.” 

Online discourse is… not doing well. Platforms are fighting claims of censorship in the courts, misinformation on social media is raging, and AI slop is filling up users’ feeds. 

All of this is enough to make people question just what reality looks like. It turns out that’s kind of what is happening, according to the paper, which points to several things contributing to this reality-distortion effect. 

Just 0.1% of users were responsible for 80% of fake news. 

Research cited in the paper notes that tiny numbers of “toxic” accounts can have massive, outsize negative effects for all users. “While only 3% of active accounts are toxic, they produce 33% of all content,” the authors said. Much of the false information online can be attributed to this minority group, too, noting that just 0.1% of users were responsible for 80% of fake news

This content sparks outrage among a large number of users, and can create “false polarization” among moderate users who are less likely to wade into the viper’s nest of online discussions and share their more typical viewpoints. 

Adding to the problem, online platforms are built to amplify the most extreme voices and reactions (both positive and negative) to capture our attention and distill it into engagement. 

This doesn’t just apply to social media, but also to content like online product reviews. You usually only see the worst reviews and the best reviews, and rarely anything in the middle. 

And on platforms like Meta’s Instagram, this manifests itself in a different way: you only see the perfect moments and most flattering moments from influencers (who are probably staging them). 

Even Microsoft’s LinkedIn isn't immune to this, note the authors of the paper. You’ll likely only see the most positive professional achievements in your feed, which might give you the false impression that everyone is absolutely crushing it at work except yourself. You’re less likely to see posts about more quotidian failures and setbacks. 

The paper notes that this fun house mirror doesn’t just give people a distorted view of what’s really happening, but can cause real-world harm. Citing prior research, the authors explain that these distortions can lead to teen drug and alcohol abuse, and support for authoritarian regimes

“The internet is an attention economy, but what we pay attention to is biased based towards threatening content.”

Claire E. Robertson is a research associate at NYU and the lead author of the paper. Robertson said there are two important things that platforms can do to help correct some of these distortions: be more transparent about how their algorithms work and give users more control over the content we do see.

“The internet is an attention economy, but what we pay attention to is biased based towards threatening content — things that threaten us and our social groups,” Robertson wrote in an email to Sherwood News.

This results in an amplification of negative and threatening content, Robertson said. Robertson also explained that the kind of content people actually prefer isn’t exactly a mystery. “Allowing people to make more concrete choices about the types of content they want to see might mitigate some of these negative outcomes.”

But what can people do to correct their perceptions of what’s actually happening offline in the real world? Robertson suggests a few ways that you can correct some of the biases.

“One thing you can do is compare the types of content you see online to your offline environment. Go through the last 20 people you called or texted — these are probably people you trust. How many of them have posted their opinions online? Do you think their opinions are well represented by your Twitter feed?” Robertson said.

Another exercise that Robertson suggests is to take a look at high-quality public polling on big issues from Gallup Polling or Pew Research. Robertson said there is a real disconnect between what people actually say their values are and what is portrayed online. “Most people hold nuanced views, and a notable portion hold opposite views than we would expect.”

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Prediction markets have, predictably, been given a boost by the summer of sports

Major platforms like Kalshi and Polymarket have seen huge upticks in users of late, thanks in no small part to what’s felt like a recent sporting smorgasbord, with major competitions across hockey, basketball, and soccer soaking up fans’ time (and spending, clearly) at the outset of summer.

While gaming industry groups may not like it, there’s been a huge change in the methods people are using to put money on the big games, with everyone from fortunate NYC bar owners, to a far less fortunate Spanish supporter, turning to prediction markets to try and turn their sports know-how into cold, hard cash.

According to a new report from Adam Blacker for apptopia, that shift might have been even more seismic than imagined in the wake of the NBA and NHL finals and around the 2026 World Cup kicking off.

While gaming industry groups may not like it, there’s been a huge change in the methods people are using to put money on the big games, with everyone from fortunate NYC bar owners, to a far less fortunate Spanish supporter, turning to prediction markets to try and turn their sports know-how into cold, hard cash.

According to a new report from Adam Blacker for apptopia, that shift might have been even more seismic than imagined in the wake of the NBA and NHL finals and around the 2026 World Cup kicking off.

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Anthropic pulls Fable and Mythos access worldwide after Trump administration bars their use by foreign nationals

Only days after releasing two versions of its next-gen AI model, Anthropic has disabled them for users worldwide.

Anthropic says it received a Friday night order from the Trump administration to suspend access to the models for any foreign national (anywhere in the world) — a group that included some Anthropic employees. In response, the company turned off access to everyone.

Last week, the company released to the public its much-anticipated Claude Fable 5 model (and its restricted version Claude Mythos 5, which is still being tested with trusted partners). Anthropic said in a blog post announcing the action that officials cited national security concerns with the new models, while offering few specific details.

The post said that the government gave the company “verbal evidence of a potential narrow, non-universal jailbreak” of the public Fable 5 model. A jailbreak is a means by which users can evade restrictions built into the code to unlock prohibited functionality. Anthropic downplayed the significance of the attack, and said other major models, such as OpenAI’s GPT-5.5, could also be affected by the technique described.

Fears of these first Mythos-class models being misused are running high, after Anthropic warned the cybersecurity world in May that the advanced cyber capabilities of Mythos have rapidly discovered thousands of vulnerabilities in ubiquitous software, leading to the decision to restrict the full version of the model to a close group of trusted partners for testing.

This morning, Axios reported that Anthropic technical staff have flown to Washington to meet with White House officials to resolve the issue.

The Wall Street Journal is reporting that the Trump administration’s decision to take action against Anthropic was prompted by discussions that Amazon CEO Andy Jassy had with officials, including Treasury Secretary Scott Bessent. According to the report, Amazon researchers said they had been able to evade some of Fable 5’s security restrictions using specific prompts. Amazon is a major investor in Anthropic.

Anthropic is currently suing the US government to fight the Pentagon’s blacklisting of the company on national security grounds.

Last week, the company released to the public its much-anticipated Claude Fable 5 model (and its restricted version Claude Mythos 5, which is still being tested with trusted partners). Anthropic said in a blog post announcing the action that officials cited national security concerns with the new models, while offering few specific details.

The post said that the government gave the company “verbal evidence of a potential narrow, non-universal jailbreak” of the public Fable 5 model. A jailbreak is a means by which users can evade restrictions built into the code to unlock prohibited functionality. Anthropic downplayed the significance of the attack, and said other major models, such as OpenAI’s GPT-5.5, could also be affected by the technique described.

Fears of these first Mythos-class models being misused are running high, after Anthropic warned the cybersecurity world in May that the advanced cyber capabilities of Mythos have rapidly discovered thousands of vulnerabilities in ubiquitous software, leading to the decision to restrict the full version of the model to a close group of trusted partners for testing.

This morning, Axios reported that Anthropic technical staff have flown to Washington to meet with White House officials to resolve the issue.

The Wall Street Journal is reporting that the Trump administration’s decision to take action against Anthropic was prompted by discussions that Amazon CEO Andy Jassy had with officials, including Treasury Secretary Scott Bessent. According to the report, Amazon researchers said they had been able to evade some of Fable 5’s security restrictions using specific prompts. Amazon is a major investor in Anthropic.

Anthropic is currently suing the US government to fight the Pentagon’s blacklisting of the company on national security grounds.

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