Analysis of the "mistaken" incident regarding the MegaETH scaling limit signature

Author: MR.JC Block PhD; Source: X, @blockphd7

After being in this industry for a long time, you will notice an interesting phenomenon: the more prestigious and valued at billions the top-tier projects are, the easier they tend to stumble in the most basic ditches.

Yesterday, the highly anticipated MegaETH staged an absurd drama under the watchful eyes of the entire network. The originally well-planned expansion of USDC pre-deposit limits was disrupted due to a technical error, causing the limit to be “rushed” ahead of time, with the cap limit soaring from 250 million, ultimately forcing an emergency halt.

Many people treat it like a melon to eat, but what I see is a vivid presentation of the Web3 dark forest principle. To clarify the nuances, I reviewed the technical logic of the whole matter and created a “Mind Map” (see the image at the end).

1. Core Misjudgment: Treating blockchain as a centralized server

The mistake made by the MegaETH team can be summed up in a simple phrase: “They signed the check and left it on a park bench, naively thinking that as long as they didn't go to the bank, the money wouldn't move.”

In their original plan, the scaling operation was divided into three steps:

1. Multi-signature wallet pre-signing.
2. Wait until the specified time (16:00 UTC).
3. Officially click to send (Broadcasting).

This is fine in the server logic of Web2, where the permissions are in my hands; if I don't click send, the request won't be executed. However, in the underlying logic of Web3, this is a completely different matter.

2. Technical Breakdown: Signing does not equal sending a message, but signing is a commitment.

I specifically broke down the difference between “Signing (” and “Broadcasting )” in the diagram, which is a cognitive gap that many developers transitioning from traditional internet often overlook.

Signature (Seal): It is your encrypted approval of the transaction data using your private key. This is like stamping a check. Once completed, this string of data has legal effect at the code level.

Broadcast (Delivery): It is sending data to miner nodes. It's like throwing a letter into a mailbox.

The key point is here: The blockchain network (post office) only cares about whether the seal is genuine, and does not care at all who threw the letter in.

The mistake of MegaETH lies in that they completed the signature early and somehow (possibly through an API leak or testnet sync) exposed this “signed raw transaction data” to the public network. Thus, top Degen like @chud_eth, with a keen sense, picked up this “check.” He took a glance: “Oh, all the signatures are gathered? Since you won’t send it, let me help you hit send.”

The result is: Without official action, a passerby directly executed the contract interaction for the project party.

( 3. Macro Insights: Operational Safety Concerns Hidden Under High Valuations

What does this mean for MegaETH?

To put it mildly, it was an operational accident that slightly lost some face, necessitating an urgent adjustment of the Cap to respond to the sudden influx of funds. To put it bluntly, it exposed the team's naivety in operational security.

The narrative of MegaETH is very grand: real-time blockchain, sub-10ms latency, 100,000 TPS. They have top-notch academic backgrounds and the endorsement of Vitalik Buterin. But academic achievements do not equate to engineering practical skills. The data that runs smoothly in the lab and the practical experience in the “dark forest” filled with MEV bots, hackers, and arbitrageurs are two completely different dimensions.

This time being sniped by @chud_eth is actually lucky. Because he simply executed the operation early on behalf of the official, rather than exploiting a vulnerability to steal funds. What if this happened in the core Sequencer logic?

For us investors, this is not just a melon, but also a signal. It reminds us to always be vigilant about the project team's ability to execute while chasing high FDV and high-tech narratives.

The phrase “Code is Law” is not only a belief, but sometimes also a cruel verdict. It does not care what your “intention” is or when it starts; it only executes the instructions it sees.

This time's “tuition fee” for MegaETH is not unjust. I hope this can truly teach this high-performance public chain, which carries the hopes of the entire village, to respect the market and the underlying common sense before the mainnet officially goes live.

Illustration: MegaETH Signature Incident and Blockchain Transaction Principle Breakdown Diagram

![8DUw0T4cnqFesrHNIwPRZQzle9arDSGalX5xp73X.jpeg])https://img-cdn.gateio.im/webp-social/moments-bbdf312182b05d1142960efecf23faf4.webp “7416738”###

The core points of the official latest announcement are summarized as follows:

Well-intentioned but misguided: In order to ensure the increase in limits (to $1 billion) at 00:00 on November 26, the officials cleverly signed the transaction data in advance.

Basic Mistake: Ignoring the common knowledge that “anyone can send a signed transaction” leads to the leakage/monitoring of signature data.

Passive Sniping: On-chain player @chud_eth obtained the data and broadcasted it in advance, causing the increase operation to take effect before the scheduled time.

Final Situation: The quota was preemptively occupied, and the officials had to issue a statement acknowledging this “technical failure” incident.

Summary in one sentence: The officials aimed to time the operations, but ended up dropping the “starting gun” on the starting line, which was picked up by a passerby and sounded early. Raising the limits made the project parties sweat; not wanting to tire themselves out, they decided not to raise the limits.