The rsETH exploit was not an isolated failure, but a systemic event that exposed how risk propagates across an increasingly interconnected Ethereum ecosystem. This report analyzes the structural conditions that made the exploit possible, focusing on the unintended consequences of restaking and the L2 roadmap. It finds that both introduced new layers of complexity and trust assumptions, making risk harder to identify and easier to spread. Ultimately, the report explores how these dynamics are forcing the industry to confront a deeper question around the trade-offs between decentralization and centralization.(Messari)