Generalized newtype deriving allows creating of instances I can't create by hand

First here is a simple module that establishes a list where once created (with a min element) subsequent elements inserted should always be larger than the min:

-- | Here we expose a MinList API that only allows elements
-- to be inserted into a list if they are at least greater
-- than an initial element the list is created with.
module MinList (
        MinList,
        newMinList,
        insertMinList,
        printIntMinList
    ) where

data MinList a = MinList a [a]

newMinList :: Ord a => a -> MinList a
newMinList n = MinList n []

insertMinList :: Ord a => MinList a -> a -> MinList a
insertMinList s@(MinList m xs) n | n > m     = MinList m (n:xs)
                                 | otherwise = s

printIntMinList :: MinList Int -> IO ()
printIntMinList (MinList min xs) = putStrLn $ "MinList Int :: MinList " ++ show min ++ " " ++ show xs

Now I import this module and use generalized newtype deriving to create a function I couldn't create by hand:

{-# LANGUAGE GeneralizedNewtypeDeriving #-}
-- | We use newtype to create an isomorphic type to Int
-- with a reversed Ord dictionary. We now use the MinList
-- API of MinList to create a new MinList. Then we use newtype
-- deriving to convert the newtype MinList to an Int
-- MinList. This final result breaks the invariants of
-- MinList which shouldn't be possible with the exposed
-- API of MinList.
module Main where

import MinList

class IntIso t where
    intIso :: c t -> c Int

instance IntIso Int where
    intIso = id

newtype Down a = Down a deriving (Eq, IntIso)

instance Ord a => Ord (Down a) where
    compare (Down a) (Down b) = compare b a

fine :: MinList (Down Int)
fine = foldl (\x y -> insertMinList x $ Down y) (newMinList $ Down 0) [-1,-2,-3,-4,1,2,3,4]

bad :: MinList Int
bad = intIso fine

main = do
    printIntMinList bad

The problem here is the isoInt method where I can do:

isoInt :: MinList (Down Int) -> MinList Int

which I shouldn't be able to do since I don't have the constructors for MinList.

This is the reason I've currently disabled newtype deriving in Safe Haskell but potentially we can enable it if this bug is fixed.