Submitted by csanuragjain, also found by joestakey, eierina, unforgiven, and Lambda
https://github.com/code-423n4/2022-11-paraspace/blob/main/paraspace-core/contracts/protocol/tokenization/base/MintableIncentivizedERC721.sol#L320
The safeTransfer function Safely transfers tokenId token from from to to, checking first that contract recipients are aware of the ERC721 protocol to prevent tokens from being forever locked. But seems like this safety check got missed in the _safeTransfer function leading to non secure ERC721 transfers
Add a call to onERC721Received for recipient and see if the recipient actually supports ERC721.
WalidOfNow (Paraspace) commented via duplicate issue #51:
