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Definitely toss the jar. You don't want to spread that mold. If you can see it on a cake, that means there are millions of bad spores there.
It could possibly be pink mold (also called red bread mold). Sometimes contams will start one color, then change.
You want nice white mycelium, which will bruise bluish green. If you are ever unsure about a contam, wipe the spot with a moist towel. If color bleeds off, it is bad.
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