Unauthorized transfers of developer workspace data to Alibaba Cloud servers were triggered by a default setting in the ZCode tool's indexing system. Zai apologized to affected users and stated that the data used to generate wiki pages was destroyed immediately after processing and not stored permanently. The company has since patched the issue and provided all ZCode users with a one-time reset of their weekly usage limits.

The tool's behavior was reported by developers who found that ZCode silently packed entire workspaces, including .git folder history, and uploaded them to Aliyun OSS upon login without a user interface option to disable the feature. Zai plans to open-source the ZCode codebase and invite third-party auditors to review the system's operations and publicize the progress to restore user trust.