Is Vailla
The underline cursor disappeared after upgrade to hyper 1.3.2
Reproduced.
I've have a wrong height on cursor-node: 1397px (whatever window size is)
I have the same issue. In my case it seems like cursorNode height is calculated based on the baseline of scrollPort, which results in it being too large.

Same issue.
You can temporaly fix it by adding this to your config:
termCSS: '.cursor-node{height:14px !important}',
@chabou where height equals your fontSize.
yes obv.
Thank you for this precision and for having precisely pointing the source of this regression.
Whoops, I just created an issue for this. Must have been writing the same time as you..
With 'hyper-materialshell' plugin set, I can't see cursor as BLOCK or UNDERLINE, even with the fix @chabou suggested.
Just noticed this today and came to open an issue. Originally thought it was something with the hyper-blink plugin. Will try the workaround 馃憤
Most helpful comment
You can temporaly fix it by adding this to your config:
termCSS: '.cursor-node{height:14px !important}',