Bounty Hunting.....I'm confused!

I'm in an anarchy system bounty hunting at a nav beacon. I KWS everything that jumps in and if it's got a bounty on it it gets taken down. After a couple of hours of fun I check my reputation page to find I have a red down indicator against the Federation, the Alliance and the Empire. I assume this is because although the system is Anarchy some of the factions in it are Federation, Alliance etc. if this is the case how can you bounty hunt without losing reputation with someone?
 
I'm in an anarchy system bounty hunting at a nav beacon. I KWS everything that jumps in and if it's got a bounty on it it gets taken down. After a couple of hours of fun I check my reputation page to find I have a red down indicator against the Federation, the Alliance and the Empire. I assume this is because although the system is Anarchy some of the factions in it are Federation, Alliance etc. if this is the case how can you bounty hunt without losing reputation with someone?
Killing pilots aligned to minor factions that are aligned to the three major factions will make your influence drop, however, it isn't really that much it does so by.
 
Killing pilots aligned to minor factions that are aligned to the three major factions will make your influence drop, however, it isn't really that much it does so by.

Yes. There's an exception, though, in that if the system has allegiance to a major faction, killing members of minor factions associated to that major faction who have bounties with that major faction doesn't reduce your rep. So, for example, if you're in an Empire League-controlled system and your target is a member of Empire League but has an Empire bounty, it shouldn't reduce your rep, because they put the bounty on him in the first place.
 
I'm in an anarchy system bounty hunting at a nav beacon. I KWS everything that jumps in and if it's got a bounty on it it gets taken down. After a couple of hours of fun I check my reputation page to find I have a red down indicator against the Federation, the Alliance and the Empire. I assume this is because although the system is Anarchy some of the factions in it are Federation, Alliance etc. if this is the case how can you bounty hunt without losing reputation with someone?

When you cash the bounties in the drop will be reversed. Bounty hunting is a very effective way of increasing rep.
 
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