Following the recent brouhaha over changes to Instagram's terms of service, the company is releasing an update to its iOS client today that adds a new filter (Mayfair), improved language support, and the usual gamut of performance improvements. Another thing version 3.4.0 includes is a new UI bug that makes private photos appear to be viewable by anyone — a sweeping change that would further inflame tensions between the company and its users if it were real.
The privacy setting in Instagram is managed with a slider — left for public, right for private. Users with private accounts will find that turning the app on after the update magically shifts that slider back to the left, making it look like everyone can access your images without your approval. Luckily, in our testing private accounts remain locked down, despite the UI weirdness. We've reached out to the people at Instagram, and will let you know what they say if we hear back.
Update: Instagram has informed us that they are aware of the issue, and confirmed that private accounts remain private despite the state of the slider. The company is actively working on a fix.
Update 2: The privacy issue has been resolved, according to Instagram. Visibility of your photos should now properly reflect the option you've chosen in settings.
Thanks, Dan Wolfe!