240/4 was reserved for future use more than 30 years ago. When is 'the future' if not now. Furthermore, reservations for 0/8, 127/8, and 224/4 seem mostly useless at this point. Also Ford, Daimler, and Prudential owning huge network blocks and neither even doing business in networking, nor announcing prefixes can be referred to as outright IP squatting (if that term exists). The US DOD seems to be a squatter, too. Ba…
Imagine how many problems would be caused by releasing 0/8 and 127/8 space. There are so many places those are hardcoded, including an uncountable number of internal company applications.
My company operates big networks and it caught us off guard when 44/8 got used on the public Internet. Internal tooling used the space because it was assumed to be non-routable. Assumptions like this always carry a risk and sooner or later, they need to be fixed. In our case, a workaround could be produced within hours, and it was fixed within weeks.
0/8 support has been added in the Linux kernel as well.
Edit: scdown.qq.com resolves to 0.0.0.1 and is possibly related to WeChat. I am not sure, if the address is actually routable in China, though.