Malicious ERC20 library is used, giving permission for address 0x815F577F1c1bcE213c012f166744937C889DAF17 to modify SantaToken balance of any addresses
SantaToken is using ERC20 library from "solmate-bad/src/tokens/ERC20.sol", which is a modified version of solmate ERC20. Malicious code is added into the TransferFrom function:
With this modification, address 0x815F577F1c1bcE213c012f166744937C889DAF17 can modify balance of any addresses, including stealing SantaToken from other addresses without giving allowance.
Foundry
Using original solmate library instead
Some sneaky elf has changed this library to a corrupted one where his wallet address skips all the approval checks for SantaToken! Shenanigans here - https://github.com/PatrickAlphaC/solmate-bad/blob/c3877e5571461c61293503f45fc00959fff4ebba/src/tokens/ERC20.sol#L88
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