1) No, no need for fake KYC. It's a fair trade. 2) The information that backstop providers buy the position once your margin fraction is >= 1.5% is public info

1) No, no need for fake KYC. It's a fair trade. 2) The information that backstop providers buy the position once your margin fraction is >= 1.5% is public info from documentation [1][2]. 3) It is an obvious trade and theoretically still possible on exchanges which have backstop providers and/or "insurance funds" to prevent clawbacks. (It depends on their risk model whether they allow you to open such a position in the first place, though. I don't know about their models at all!) But just because it is obvious, it doesn't mean it is easy to pull off. Most people fail at the first step, which is that you have initial margin to open a position and then actually move the price in your favour. Then you have people, who will try to bet against you, hunt your stops etc. [1] Backstops: https://help.ftx.com/hc/en-us/articles/360024479392-Backstop-Liquidity-Provider-Program https://help.ftx.com/hc/en-us/articles/360024479392-Backstop... [2] Cashing out: https://youtu.be/0ms7u__Gbys?t=87 https://youtu.be/0ms7u__Gbys?t=87