The term "hooked environment" is most commonly used to describe a situation where a system or an application has been compromised or manipulated in some way. This is most often by an external entity. This can lead to unauthorized access, data theft, or other malicious activities.
If your crypto CEX (Centralized Exchange) account is subject to a hooked environment, it could mean that your account has been compromised. In such a situation, individuals might gain access to your account, potentially leading to the loss of funds or sensitive information.
To protect your crypto CEX account, it is crucial to follow good security practices, such as using strong and unique passwords, enabling two-factor authentication (2FA) - ^this should not be SMS authentication^, regularly monitoring your account activity, and keeping your software and devices up to date with the latest security patches.
If you suspect that your account has been compromised or you believe you are in a hooked environment, it is important to contact the customer support of the exchange immediately to report the issue and take appropriate actions to secure your account.
^You can read a bit about 2FA here: https://www.bitdefender.com/blog/hotforsecurity/why-use-an-authenticator-app-instead-of-sms/ ^
This also applies to DEX, obviously - and everything else