The meaning of the sentence

Hi guys,

English writer Enid Blyton is one of the most popular authors in the world. More than 400 million copies of her children's books have been sold worldwide and generations of British children have grown up hooked on her stories of adventure and magic.

About the meaning (and grammar) of the red part:

1. As in
Many children have grown up listening to the Beatles.
He sat in the corner tied to an old chair.

2. A replaced (for end-weight or end-focus) adjective phrase of an original adjective clause:
... and generations of British children who are hooked on her stories of adventure and magic have grown up.

I favor the first one. And I need confirmation from native speakers.

Thanks!