naruto on Nostr: Every crafted transaction that causes inflation on Liquid has a proof attached to it ...

Every crafted transaction that causes inflation on Liquid has a proof attached to it that doesn't actually validate. You can detect inflation by validating all the proofs and seeing which ones fail.

The unpatched nodes split because they correctly validated proofs and identified the invalid ones.

The patched nodes were not using correct code to validate the proofs. They just need the correct code and would be able to reject all the invalid ones.

Hidden inflation is not that^. With hidden inflation, you cannot tell the difference between invalid transactions and valid transactions and so you can't go back and detect and erase invalid transactions like you can here.

It's true that confidential transactions increase complexity, but you can also break a sum tally in a way that "tricks" software via an overflow bug.