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Bottom of the NinthPSA certainly has their share of mistakes floating around. Then again they have graded 7 million plus cards. The Spahn is quite funny.
Not sure any "inner circle" exists at PSA as it seems people who use them do so only because their product usually sells for more than their competitor's holders. Seems even the high volume dealers are disappointed with them these days.
Also anyone who wants to submit a card that is altered and have it placed in a holder deemed "Authentic" can do so as long as they have an account with PSA and the card they are submitting is genuine. PSA is no different than most businesses and professions; they will do anything for a buck. It is all about their bottom line.