Not a professional liar either but I'm not sure about that. I imagine torrent trackers are a decent analog thats been through the courts already. They don't host the content, they just host URIs and metadata to people that host the content.

The drag and drop interface isn't to upload the content to be hosted like a traditional server (what's the point then?) It looks like (without digging through code) it's so they can parse the file-structure and generate the URIs to forward requests.