@dkocher commented

Either try updating the Java installation using Software Update… in OS X or update to the latest beta or snapshot build which has no Java installation requirement.

289ebff commented

Replying to [comment:1 dkocher]:

Either try updating the Java installation using Software Update… in OS X or update to the latest beta or snapshot build which has no Java installation requirement.
I have the latest Java installation (Java version 7 update 25)
I installed the July 31 snapshot (Cyberduck-12462) and tried to run it first by double clicking and then by running the file in the package. The info provided in Terminal when I tried to run was the folioing

Utilities/Cyberduck-12462/Cyberduck.app/Contents/MacOS/Cyberduck ; exit;
SLF4J: Detected both log4j-over-slf4j.jar AND slf4j-log4j12.jar on the class path, preempting StackOverflowError. 
SLF4J: See also http://www.slf4j.org/codes.html#log4jDelegationLoop for more details.
Exception in thread "main" java.lang.ExceptionInInitializerError
	at org.apache.log4j.Logger.getLogger(Logger.java:40)
	at org.apache.log4j.Logger.getLogger(Logger.java:48)
	at ch.cyberduck.ui.cocoa.MainApplication.<clinit>(MainApplication.java:57)
Caused by: java.lang.IllegalStateException: Detected both log4j-over-slf4j.jar AND slf4j-log4j12.jar on the class path, preempting StackOverflowError. See also http://www.slf4j.org/codes.html#log4jDelegationLoop for more details.
	at org.apache.log4j.Log4jLoggerFactory.<clinit>(Log4jLoggerFactory.java:51)
	... 3 more

My OS system is 10.8.4

@dkocher commented

Remove the log4j-over-slf4j JAR file in /Library/Java/Extensions. Unfortunately another application must have installed it there and for yet unknown reasons this is seen in the class path when launching the bundled runtime.

@dkocher commented

Fixed in 8c7361d with setting the extension directories to only include lib/ext from the bundled runtime.