The agreement was that once regular, you keep the badge even if downgraded, and that is enough for a level 3 signup. But after the software upgrade, the bug/feature of keeping the regular badge when downgraded was gone and there has not been any update to how we are going to proceed as far as I remember.
In my opinion there should be a replacement for the permanent regular badge that you keep once you made it to level 3 and seed run status is based on this. Not sure if the software can do it though. I’ll try to find the relevant thread later, it’s kind of off topic in this thread.
Just wanted to say, the wrong signups are probably not caused by bad intention.