Alternate take: the exploit was probably real but not catastrophic, and the existing Anthropic/government relationship was already strained from poor communication and prior contract friction.
So when the government demanded “fix it or pull the model,” Anthropic may have seen an opportunity to overcomply: take Fable 5 fully offline, generate pressure/press, assert control, and make the mandate look unreasonable.
There’s also probably a cost/sustainability angle. If Fable 5 was extremely token-hungry and expensive to serve broadly, this gave Anthropic a convenient reason to pause or restrict access while blaming the mandate.
My guess: benign-ish jailbreak + rocky relationship + strategic overreaction + cost relief. Not one simple story.