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Did the reinstall fix the issue? Since the reinstall preserves user data, is there any chance of malware re-inserting itself after the OS has been reinstalled?

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Yes, a reinstall fixed it. And yes, persistent malware should be possible (unless you format your disk).

Or if the malware lives in the disk controller firmware in which case even formatting the disk won't help.

Is the "Firmware Restoration CD" sufficient to reset firmware to a known-good state?

https://support.apple.com/en-us/HT201692

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