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Researchers Develop Software for Finding Cloud-based Malware

Yup. it seems like that is the case. Either that or security was good but then was broken, which ends up happening a lot these days.
 
Doesn't the mere existance of cloud-based malware, mean that the cloud has broken security models?

What do you mean exactly? The article talks about malware infecting the hypervisor... The hypervisor is just an OS that is optimized to run virtual machines. Not sure how an OS getting infected is anything new.
 
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