This is true of the Cosmos hub or anything running Tendermint (to some extent, see a good point here), but I was specifically asking about a > 100 block fork on the Ethereum chain. As the article above states, the peg zone “waits for 100 blocks, the finality threshold, and implements this pseudo-finality over the non-finality chain.”
Thus, in the case that a > 100 block fork occurs, if the peg zone happens to have “pseudo-finalized” the fork that dies, then the peg zone must have some way to recover. It seems like governance or something similar is the solution here (especially considering the tokens floating around on the hub that might not really be where we think they are), but maybe I’m missing something.