Is that guy running the bot farm not afraid of legal action from Instagram? I'm not well versed but it seems like something they could go after him for. I wouldn't be spouting off about it to buzzfeed, that's for sure.
...which is unfortunate since I went and signed up on Instagram so I could play with their API to see how hard it would be to detect bots with a little python-fu.
It now looks like you have to have a facebook business account to be able to "game" instagram -- maybe?