That's it and the reason a second lottery is being run.

Calling it fraud is stupid. They deliberately reduced the work that is required, allowing people to file applications easily and cheaply. They deliberately allow people to file multiple applications, that I have not seen a single legitimate employee file. This is all deliberate, not a loophole or fraud.

Also, it is stupid to call H1B a high-skilled visa when you hand it out via lotteries. I wonder if people consider winning powerball as a skill?

But to answer your question, many people filed 10-20 applications each through fake companies to get H1B. The H1b acceptance rate was down to 13% and more than half the applications were filed by people with multiple applications.