"You know, it's funny; when you look at someone through rose-colored glasses, all the red flags just look like flags." - Wanda the Owl, BoJack Horseman
Or from an even earlier poster / TV show -- "I Want To Believe"
But red just looks like red in those glasses
Yes, just as white or many non-red flags would. The idea is that other flags are indiscernible from red flags because everything is rose-tinted, and more amusingly the playful combining of two common English expressions.
I know what the expression means mr. captain obvious.
It helps to have a giant red herring that isn’t directly related to a liquidity or solvency problem. In Binance’s case, it’s their incredibly dubious USD banking arrangements. It’s not a secret, and it’s a great distraction for Binance to point at if they don’t want to move real USD at any given time.
When they finally go down all the red flags will be crystal clear in retrospect.