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I wonder who the lucky person was.

I used around 40 observer blue mech and observer heavy mech kernals just to finish off seismic ERP to T4. I had everything else, so i got 40x nothing basically, except for seismic ERP. Huge price to pay, but i wanted to complete the T4 ERP set for all types.

I see a few problems with punishing people for this in most circumstances.

You're hunting observers, you find a spawn and kill them, they both respawn, you can't get the loot, you kill them again, they might respawn again, in which case if you want the loot you need to kill them again, by now from what i've seen they usually won't respawn again. Nobody should be punished for doing this.

If the same observer is respawning dozens of times and you kill it over and over for hours on end, well this is quite the exploit, especially if you end up with like 30+ kernals from killing the same bugged npc over and over. The thing is even if you don't kill it and just leave it, chances are someone else will come along and kill it anyway and have the same thing happen with them. I'll note that i've not seen one of these infinitely respawning observers, i've only heard people talk about them.

Observers almost killed npcing. Then they added the 50% kernal drop rate nerf, and finally finished off npcing. RIP high end npcing.

IMO, if you kill an observer, and it respawns, kill it, no harm done. But if it keeps respawning over and over dozens of times seemingly never ending, that is way out of hand.

I don't know what observers you're talking about, the ones i've seen are like this. They either die and don't respawn, or they die and respawn once, or sometimes, they will die and respawn an extra time. I had a superior observer spawn 50m from me, on my head.

Anything he may have done with regards to fleets of T4 grophos doesn't exactly count as valid considering past events, in which losing means very little.

It should hold true though, because that past is what Siddy is no doubt refering to.