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The mechanism is you simply don't put these problems to the candidates you don't want to flunk out.

I didn't see anything like that mentioned in TA. It sounded like the same problems were being given to everyone -- and that the malicious behavior was in problem selection itself. Am I wrong?

The "A personal story of Tanya Khovanova" section at the start of the article itself describes the method more explicity: "One of the methods they used for doing this was to give the unwanted students a different set of problems on their oral exam."

The introduction adds that the Jewish (or otherwise "undesirable") students "were given these problems one after another until they failed one of them, at which point they were given a failing mark."

You are. It's described several times including on the first page, second paragraph:

One of the methods they used for doing this was to give the unwanted students a different set of problems on their oral exam.

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