> 3.8 Risk of undercollateralization

> In Example C, if the price of ETH falls by 50%, Alice’s balance in the channel is effectively worth nothing. If the price of ETH falls further than that,the channel would become undercollateralized—Bob would no longer be able to withdraw his USD at its current value.

This can and will happen in the real world, and seeing how the "crypto-sphere" is teeming with scammers running pump-and-dumps, and exchanges manipulating prices, it's pretty much guaranteed.