According to the team, the exploited contract was a third-party Safe module that merely integrated with multiple protocols, including Squid. The protocol emphasized that its official router contract was not affected and that no Squid user funds, balances, or approvals were compromised during the attack.

Security researchers found that attackers exploited a flawed verification mechanism within the module, allowing them to execute arbitrary transactions and drain funds from affected wallets. The incident highlights growing concerns around third-party integrations and smart wallet modules, even when core protocol infrastructure remains secure.