A double sided attack where they sell the 11 billion first and THEN reduce the Chinese controlled bitcoin mining hash rate would be very concerning. Imagine the cascade effects. The 11 billion sale would cause the market to drop and then if the hashrate was reduced after their sales cleared - the bitcoin market would drop and people looking to get out of bitcoin would be trapped because block times could potential increase to very long times. This would be like trying to clear a stadium with 1/2 of the doors locked during a fire. The results would not be pretty. This is exactly why I think IOTA has it right.

My opinion - the IOTA crypto architecture can and will prevent "attacks" such as the one mentioned here. IOTA is fee less - proof of work is done by each user in a distributed computing model. IOTA is inherently scale-able - the more users making transactions, the higher the network throughput. This is due to the fact that for every transaction a users posts they have to do proof of work on two transactions. This makes IOTA's network transaction rate exponentially scale-able. This also makes it improbable that any single entity or group could control network hash throughput.

There have always been and always will be groups of people looking to manipulate others. Bitcoin is ripe for this sort of manipulation (due to popularity, high price and old technology). Thanks for sounding the alarm so that everyone is not caught off guard to this possibility.