Summary
An attacker can make use of JSON-LD features to restructure a JSON-LD document that would change how Fedify interprets it without changing its Linked Data Signature, allowing them to alter a third-party signed activity they have received.
Details
The vulnerability essentially boils down to the signature being on the canonical RDF graph representation of the JSON-LD document, and JSON-LD offering many ways to represent the same graph.
One of the issues is that by taking a signed Activity with an embedded object, an attacker can move the top-level Activity to a @graph property and move the activity's object to the top-level. Such a transformation preserves the signature and changes how the payload is interpreted by pretty much all ActivityPub implementations, making them process the object and ignore the formely-top-level activity. This can be used when the graph contains an embedded activity. In Mastodon, that is the case of { "type": "Undo", "object": { "type": "Announce" } }, but other implementations may sign other activities that can be exploited in the same way.
The @reverse keyword can also be used to change the shape of a JSON-LD document without changing the underlying graph, and could be used in a similar way to reverse an Activity and its object.
Another problematic feature is @included, which can be used to “move” properties outside of the normal tree, effectively making them invisible to most ActivityPub implementations, while, again, preserving the signature. This allows removing statuses or actor properties once a signed Create or Update activity is received.
Given that Fedify have seen no use of @graph, @included or @reverse in ActivityPub payloads and that they are very complex to handle correctly (the only JSON-LD API functions that “normalize” @included and @reverse are flattening and framing, which both lose the root node), a decision to reject them has been made, and it is recommended for users do so as well.