Blockchain service company Notional Labs CEO Jacob Gadikian recently disclosed that the collapse of the Terra ecosystem was not solely caused by Do Kwon, but was the result of a carefully planned attack by unknown assailants. According to Flipside data, during the UST de-pegging, on-chain transaction volume surged sixfold, and a large number of bot trades prevented Terra from restoring the UST dollar peg through its economic model.
Specific analysis shows that the attackers initiated over 70,000 failed transactions through a few addresses, causing congestion in the validator node memory pool (which can only accommodate 5,000 transactions). Gadikian showcased a video of the Cosmos hub testnet being attacked, which closely resembled the situation during the UST de-pegging. According to Gadikian’s assessment, the true orchestrators of this incident are still at large.