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I just used it to access cmyip.com, and it shows their IP without identifying it as a proxy... I tried to contact them to say that people can abuse it, but there's no way to contact them without creating an account. :( Welp.
I lost my hope when they removed the "access to the Internet" permission from the list of privileges. Now you take for granted that all apps will try to do that.

I use AFWall+ and CyanogenMod's Privacy Guard to control everything, but it's sad that the data of most people I know may be stolen without their knowledge after they install yet another Subway Surfers-type game or "vintage photo effects" app.