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Re:Meldium (YC W13) Controls Your Team’s Shared App Password... by stanleydrew on Monday February 25, 2013 @09:05PM (#5283409)
I doubt it's a local proxy since it's a Chrome/FF extension. Or maybe I've not kept up with the state of Chrome/FF extension development and it is completely possible to write a proxy that runs within the browser.
Re:Meldium (YC W13) Controls Your Team’s Shared App Password... by Hello71 on Monday February 25, 2013 @09:41PM (#5283565)
Extensions don't proxy anything. They do, however, have access to everything you do (type, click, etc) and everything you can see. (i.e. close enough)