  Vast investments have recently been made worldwide in developing the
Cyber-Physical System (CPS) technology with the expectations of improving
economical and societal structures. However, great care must be paid to the
CPS' complexity, the impact of emerging IoT (Internet of Things) protocols on
the CPS infrastructure as well as the impact of information dissemination by
these protocols on the safety of these infrastructures. This paper addresses
the issue of CPS safety by proposing and evaluating the performance of a CPS
management framework and the analysis of the dynamics of the underlining IoT
network in the cyber-space. The main contributions of this paper are in
threefold. Firstly, a new CPS framework is proposed; that: 1) builds around a
layered architecture to compartmentalise the CPS functionalities into different
modules for efficiency and scalability and 2) uses an inner feedback loop for
the efficient management of CPS infrastructure. Secondly, building upon this
framework, a novel diffusion model that uses the epidemic (interference) sets
to produce accurate diffusion patterns across the CPS IoT subsystem is
proposed. Finally, the proposed diffusion model is numerically analysed to show
how it can be used to achieve efficient CPS surveillance in order to trigger
reconfiguration to re-optimise the CPS when it is under stress. in IoT
settings. The numerical analysis of the diffusion model shows that interference
propagates in pairwise disjoint sets, with IoT nodes migrating from
"susceptible" to "attacked" statuses and finally reaching the "removed" state
at a predictable time. Deployment considerations on some of the current social
and public networks are also onsidered
