[BUG] Cursor blinks below status bar instead of at input prompt position

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

The terminal cursor visually appears and blinks several lines below the status bar/HUD area instead of at the input prompt (❯) where text is being typed. The input still works (text appears at the correct location), but the blinking cursor is displaced.

What Should Happen?

The cursor should blink at the input prompt position (❯) where the user is typing.

Error Messages/Logs

# No errors - purely visual rendering issue

Steps to Reproduce

1. Open Ghostty terminal (or Terminal.app)
2. Run claude
3. Observe cursor position - it appears below the visible input area
4. Type text - text appears correctly at the prompt, but cursor blinks elsewhere

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

Unknown

Claude Code Version

2.1.11

Platform

Anthropic API

Operating System

macOS (Darwin 25.0.0, arm64)

Terminal/Shell

Ghostty 1.2.3, Terminal.app (both affected)

Additional Information

Environment:

• TERM: xterm-256color
• GHOSTTY_SHELL_FEATURES: path,title (cursor removed via config)
• Shell: zsh

Troubleshooting attempted (none resolved the issue):

1. Disabled custom statusLine configuration
2. Removed all debug echo hooks from settings.json
3. Disabled claude-hud plugin
4. Updated Ghostty config with shell-integration-features = no-cursor
5. Added .zshrc workaround to strip cursor from GHOSTTY_SHELL_FEATURES
6. Verified GHOSTTY_SHELL_FEATURES shows path,title only
7. Tested in Terminal.app - same issue persists

Related Issues:
This may be related to the broader TUI rendering issues in v2.1.x:

• #17816 (slash command highlight offset)
• #18493 (resize content loss)
• #18716 (/context disappears)

The cursor position and these other issues may share a common root cause in the TUI rendering layer.