Submitted by Franfran, also found by __141345__ and poirots
When the squared root of the Uniswap V3 position is calculated from the _getOracleData() function, the price may return a very high number (in the case that the token1 decimals are strictly superior to the token0 decimals). See: https://github.com/code-423n4/2022-11-paraspace/blob/main/paraspace-core/contracts/misc/UniswapV3OracleWrapper.sol#L249-L260
The reason is that at the denominator, the 1E9 (10**9) value is hard-coded, but should take into account the delta between both decimals.
As a result, in the case of token1Decimal > token0Decimal, the getAmountsForLiquidity() is going to return a huge value for the amount of token0 and token1 as the user position liquidity.
The getTokenPrice(), using this amount of liquidity to calculate the token price is as its turn going to return a huge value.
This POC demonstrates in which case the returned squared root price of the position is over inflated
