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I think you shouldn't put the cython definition and the interact in the same cell, because the cython cell will call a C compiler and will be quite expensive to execute. It doesn't make sense to weigh down every execution of the interact by the C compiler call.

Anyway, you can avoid the %cython magic and calling the cython environment from python:

cython("""
def function(...):
    ...
""")

@interact
def wrappe(...):
    ....