A third-party module called SquidRouterModule was exploited for approximately $3.2 million, but cross-chain liquidity protocol Squid says it had no involvement in deploying the vulnerable contract. Squid stated its core protocol remained fully operational and unaffected by the breach, distancing itself from the incident entirely. The team acknowledged uncertainty over who originally deployed the SquidRouterModule, raising concerns about unauthorized or copycat contracts mimicking legitimate protocol infrastructure. The exploit highlights a growing risk in DeFi where third-party or peripheral modules can be mistaken for official protocol components, potentially eroding user trust. Squid urged users to verify contract authenticity and confirmed it was investigating the circumstances surrounding the rogue module's deployment.
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