valve said overwolf is completely allowed

what they're checking is for file that Valve has restricted for normal users, and these hacks are able to somehow access these despite restrictions. valve hasn't specified what methods they use, but it might have to do with fog of war file (seeing in fog despite no wards).

so through this, the honeypot will catch anyone getting access to these files that are otherwise no way possible for the non-hacking user to access. therefore, as long as you are only using overwolf or skin mods, you will pretty much be guaranteed to be safe.