Poseidon Hash is used in ZK (zero-knowledge) applications. It's designed to have (much) smaller circuits than traditional hashes making ZK proofs much faster.
It's quite new. The different implementations of it don't always align.
The problem that was found is not with the function itself, but rather with a specific implementation.
There's already a "Poseidon 2" function that is used in some places, like Noir.
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