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Why is Blum-Goldwasser not IND-CCA-2 secure?

Consider the Blum-Goldwasser encryption scheme as described on Wikipedia. I was told that it was not IND-CCA-2 secure. I heard there was malleabilty, probably it has to do with XOR-ing. But I do not ...
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Why is proof-by-reduction needed (for Elgamal proof of security, for example)?

The textbook proof for Elgamal encryption basically reduces to the Decisional Diffie-Hellman assumption (DDH). Elgamal: $Gen(.): x \xleftarrow{R} \mathbb{Z}_p$; $Enc(m,g^x): r \xleftarrow{R} ...