Frankie,
You are answering your own question although you problably dont see it.
The fact that he likely has only a fraction of the deposits is why some have said this effort is throwing good money after bad.
You've always said you understand Pirate's business model, so I would appreciate some of your expertise here. How does paying people to "trick" them into think it's a Ponzi help Pirate? Keep in mind, these were the same people telling people not to invest and to pull out their funds--for months, in many cases.
By your own logic:
Pirate only has a fraction of the money so hunting him is to
throw good money after bad -> I.e. Do not go after Pirate since he ran a ponzi.
How does paying people to "trick" them into think it's a Ponzi help Pirate? -> If people believe Pirate has no money they wont go after him.
Best regards