The exploit is a standard reentrancy attack made possible because the funds are sent before the state variable is updated. The receiving contract can then call the withdraw function again, leading to more funds being withdrawn than should have been available.
Call the withdraw() function from the receive() function.
In order to prevent re-entrancy attacks when moving funds out of your contract, use the Checks-Effects-Interactions pattern being aware that call will only return false without interrupting the execution flow. Solutions such as ReentrancyGuard or PullPayment can also be used.
transfer and send are no longer recommended solutions as they can potentially break contracts after the Istanbul hard fork Source 1Source 2.
Always assume that the receiver of the funds you are sending can be another contract, not just a regular address. Hence, it can execute code in its payable fallback method and re-enter your contract, possibly messing up your state/logic.
Re-entrancy is a common attack. You should always be prepared for it!