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The Trezor itself is a small computer reading the input from the usb cable, checking if this is a valid request, asks for user confirmation if necessary and then sends a reply, e.g. a signed transaction to the main computer. It has no direct connection to the internet, but if you have a malicious program on your computer it could send requests from the internet directly to the Trezor and send the replies back.
The point of the software running on the Trezor is to make it secure even in that case. So it checks all incoming requests, never sends private keys, and only sends signatures out after they were confirmed by user using its physical buttons/touchscreen. But like any other software it could have bugs.
This is where code reviews, fuzzing (simulating billions of random requests and checking if something unexpected happens), and being conservative when adding new features come in. These help preventing these bugs or detecting them before they are shipped out. There is also a bug bounty program where you get paid for finding such bugs and reporting them in private to SatoshiLabs so they can fix them, before the bugs become publicly known.