encoded_id-rails versions prior to 1.0.0.beta2 are vulnerable to a denial-of-service (DoS) condition caused by processing extremely long encoded IDs in URIs. The vulnerability arises because the hashids library consumes excessive CPU and memory when handling very long encoded IDs, potentially leading to service disruption. Puma web server limits URI lengths and raises errors for overly long paths, but the CPU and memory exhaustion can occur before these limits are enforced. A fix is available in version 1.0.0.beta2.