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I can understand the company pulling usernames from an automated name squatter... but I wonder if this happens to fully established accounts too?

Well, I tracked the previous UIDs and saw a lot of names that weren't squatted getting released and shortly after ending up with Instagram employees.

E: Oh yeah, there was also the whole "trademarking" thing that was used to steal generic names from active accounts using obviously invalid trademarks. https://www.vice.com/en/article/zma3w4/scammers-fake-tradema...