Baldi et \textit{al.} proposed a variant of McEliece's cryptosystem. The main idea is to replace its permutation matrix by adding to it a rank 1 matrix. The motivation for this change is twofold: it would allow the use of codes that were shown to be insecure in the original McEliece's cryptosystem, and it would reduce the key size while keeping the same security against generic decoding attacks. The authors suggest to use generalized Reed-Solomon codes instead of Goppa codes. The public code built with this method is not anymore a generalized Reed-Solomon code. On the other hand, it contains a very large secret generalized Reed-Solomon code. In this paper we present an attack that is built upon a distinguisher which is able to identify elements of this secret code. The distinguisher is constructed by considering the code generated by component-wise products of codewords of the public code (the so-called "square code"). By using square-code dimension considerations, the initial generalized Reed-Solomon code can be recovered which permits to decode any ciphertext. A similar technique has already been successful for mounting an attack against a homomorphic encryption scheme suggested by Bogdanoc et \textit{al.}. This work can be viewed as another illustration of how a distinguisher of Reed-Solomon codes can be used to devise an attack on cryptosystems based on them.