This statement confused the heck out of me (wow! magic free memory) but of course, the pointers are being held to the contents of the memory, just not to the start of the object, which is what the GC cares about.

Perhaps the GC could be modified to track pointers not just to the head of object but to any address within it. Alternatively, C-coders working with Ruby could just say "I'm using this gc object" before calling C code.

I don't see this is a fatal flaw at all. Sounds like its just a bug. Now if, as many here assert, this bug is present all over the Ruby VM, then that's pretty unfortunate. Is that the case, or just hyperbole?