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It's not too dissimilar from the adversarial justice system, but in a different domain, to be honest.

If this were analogous to a judicial proceeding, it would be one in which one side submitted fabricated evidence. How is that "well played on both sides"?

Because the justice system depends on entrapment and fraud?

I would suggest that Project Veritas acting in this manner is very much a problem. Remember, they weren't just trying to discredit a major journalism institution here, but sexaul assault victims everywhere.