Culper Research published a short report on Ethereum (CRYPTO: ETH) on Thursday, calling its economics “impaired” and warning the network may be entering a “death spiral.”

The short seller also accused Fundstrat’s Tom Lee of “throwing good money after bad” through his ETH treasury company BitMine Immersion Technologies (NYSE:BMNR).

The report’s title says it all: “What Vitalik Knows, and Tom Lee Doesn’t.”

What Happened

In the short report, Culper says the Fusaka upgrade was supposed to cut transaction fees by 10-30%.

Instead, fees collapsed by roughly 90%, gutting the EIP-1559 burn mechanism that once made ETH deflationary.

The firm says Vitalik and validators…

Read more on Benzinga