diff --git a/confit/config.py b/confit/config.py
index 14d3f76..32f7661 100644
--- a/confit/config.py
+++ b/confit/config.py
@@ -141,10 +141,11 @@ def from_cfg_str(cls, s: str, resolve: bool = False, registry: Any = None) -> An
     @classmethod
     def from_yaml_str(cls, s: str, resolve: bool = False, registry: Any = None) -> Any:
         import yaml
-
         class ConfitYamlLoader(yaml.SafeLoader):
             def construct_object(self, x, deep=False):
                 if isinstance(x, yaml.ScalarNode):
+                    if x.style == '"' or x.style == "'":
+                        return loads(x.style+x.value+x.style)
                     return loads(x.value)
                 return super().construct_object(x, deep)
 
diff --git a/confit/utils/xjson.py b/confit/utils/xjson.py
index f49f36a..61e4739 100644
--- a/confit/utils/xjson.py
+++ b/confit/utils/xjson.py
@@ -260,24 +260,19 @@ def __init__(self, value: str):
 
 def loads(s: str):
     """
-    Load an extended JSON string into a python object.
-    Handles references and tuples, and detects malformed objects.
+    Load an extended JSON string into a Python object.
+
+    Handles references, tuples, and detects malformed objects.
     """
     try:
         return XJsonTransformer(s).transform(_json_parser.parse(s))
     except Exception:
-        # Detect malformed strings with unmatched quotes
-        if (s.startswith("'") and not s.endswith("'")) or (
-            s.startswith('"') and not s.endswith('"')
-        ):
-            raise MalformedValueError(s)
-
-        # Detect suspicious malformed patterns
-        if any(char in s for char in ",{}[]") and not s.startswith(("'", '"')):
+        # Fail if we suspect that it is a malformed object
+        # (e.g. has ', ", {, }, [, ] in it)
+        if set(s) & set(",'\"{}[]$"):
             raise MalformedValueError(s)
-
         return s
-
+       
 
 def dumps(o: Any):
     """
diff --git a/tests/test_config_instance.py b/tests/test_config_instance.py
index 34b879c..b8b8f0e 100644
--- a/tests/test_config_instance.py
+++ b/tests/test_config_instance.py
@@ -694,5 +694,23 @@ def test_very_long_yaml_config():
         """.format(
             "x" * 4200
         )
-    )
+    ).resolve(registry=registry)
     assert config == {"a": "x" * 4200}
+
+
+def test_escaped_string():
+    config = Config.from_yaml_str("""
+test: 
+    a: "1"
+section:
+    num: 1
+    escaped_num: "1"
+    real_ref: ${test.a}
+    escaped_broken_ref: "${test.a"
+    escaped_ref: "${test.a}"
+""").resolve(registry=registry)
+    assert config["section"]["num"] == 1
+    assert config["section"]["escaped_num"] == "1"
+    assert config["section"]["real_ref"] == "1"
+    assert config["section"]["escaped_broken_ref"] == "${test.a"
+    assert config["section"]["escaped_ref"] == "${test.a}"
\ No newline at end of file