Undo changes deleted entire repo

Describe the Bug

Clicking undo in the open file with suggested changes, my entire repo folder was deleted.

Steps to Reproduce

I don’t want to try to reproduce this.
I was in the chat, and it suggests a code change.
I did not Keep or Undo the change.
I asked it to make more of a change instead.
It did, but also ended up changing a bunch of unrelated things.
So in the open file, I clicked the Undo.
Then my repo disappeared.
I opened Finder and went to the parent folder, and the entire repo folder was gone.
Looking in my Trash, I had three folders. one was the folder named after my repo, the other two where named after two subdirectories inside the repo
The two subdirectories were empty.
The main folder had a .mypy_cache folder in it.
I was lucky to have a terminal window open to the deleted directory.
There, I could still do git commands, although git status did not show my latest changes.
I was able to do an rsync in that terminal, to copy everything to a new directory.
Then renamed that directory to the original name.
Then in Cursor I am able to use the LocalHistory to recover the latest changes.

Expected Behavior

Undo never deletes the repo.

Screenshots / Screen Recordings

Operating System

MacOS

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.4.3 (Universal)
VSCode Version: 1.99.3
Commit: e50823e9ded15fddfd743c7122b4724130c25df0
Date: 2025-08-08T17:34:53.060Z
Electron: 34.5.1
Chromium: 132.0.6834.210
Node.js: 20.19.0
V8: 13.2.152.41-electron.0
OS: Darwin arm64 24.6.0

Additional Information

Doesn’t stop me from using Cursor, but it cost me a couple of hours to recover.

Does this stop you from using Cursor

No - Cursor works, but with this issue