Clarification on Player Minor Faction details

On the main webpage by FDev regarding Player Minor Factions, it has this detail:

  • All "addon" minor factions that have been confirmed as a squatting minor faction will be removed in addition to the main minor faction being removed.
What exactly does this mean? I can't find any documentation that defines a "squatting minor faction".
 
If a player group has already had a new faction added and then apply for more, purely to occupy certain systems in order to prevent other groups adding factions there, that additional faction would be termed a 'squatting minor faction'. If FD become aware of this they'll remove both the new and original factions.
 
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