> Do I understand correctly that this attack only applies if Alice
> attempts to fee bump her batch transaction? In short, is this the
> attack:
Fundamentally, yes. This attack is primarily targeting all transaction flows with a fee bump.
See section 6.4 of the joined paper for more characterization of the "Transaction Traffic Hijack", while no quantitative analysis of the average % txn affected has been done so far.
There could also be UTXO-sharing flows that are affected, where the attacker is propagating first, and preventing the other tx to propagate, before evicting his own package.
However no test and no thoughts has been given to this "block-first-at-the-UTXO-root" alternative, the fee bump is more concerning.
Best,
Antoine