If diff > 3, then every block can be an anomaly, and therefore all an attacker needs to do is raise the difficulty above 3 while holding 51% of the hashing power (setting the difficulty as desired would be fairly easy - again by abusing KGW and nTime), to ensure every block is an anomaly.
Aren't you glossing over the
all an attacker needs to do is raise the difficulty above 3 while holding 51% of the hashing power a bit? Exploiting this aspect of the flaw is out of the reach of the vast majority of miners, and even so, not a lot of attackers could use it simultaneously. In practice, wouldn't this just result in an arms race among attackers vying for the 51% making the whole thing not profitable?
I think he was looking for an flaw in the coins design and the best he could up with for manipulation is a 51% attack that can take most (not all) +1 blocks.
We all know and are aware a 51% can be bad however how often does one happen? Now yes If I joined with two of my buddies we could do a 60% attack on the network just because not a lot of people have caught on to the value of this coin. It does not mean I am running out to join forces to control a coin.
However really with any coin under 1ghs network will always be able to be controlled by a group if desired so the best thing we can do is spread the word around and get more miners on board.
So his big reveal nothing that is new really.