The problem is that you cannot do anything about it, other than suing the author - if you can find them and they're in a reasonable jurisdiction.

Well, you can try to break the system by splitting it in half, introducing an overlapping domain. If collisions is the desired way of dealing with it, the whole thing is ultimately broken.

Just imagine Amazon breaking Google domains because they have a better cloud.

With ICANN and registrars, there is a point you can directly attack legally, and a root of trust.