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is cloudflare using openresty( its author agentzh works for cloudflare)? or their own nginx + lua implementation?

We use openresty and, yes, agentzh, the project's creator, is on our team.

why not pay him to get websocket support out? who prioritizes his work queue?

What a bizarre comment. They are paying him.

He has said that someone could sponsor him to do it in his own time https://github.com/chaoslawful/lua-nginx-module/issues/165

He prioritizes his own work and I trust his judgment.