How can this faction still be controlling everything? (Bug?)

[Sentenza]

One further wrinkle about "home" systems. One of the now defunct early expansion mechanics was when a faction expanded into a system, it sucked a faction from the target system into the expansion source system. So it is possible now for a faction to be located in a single system that is not its natural home system. I understand that if it retreats it reappears in its original home system (in the same fashion as an expansion). I haven't witnesses this in the wild yet, but this is the way it should work.

Yes, I actually witnessed that.

 

[Ryan Murdoc]

Likewise. That's how it worked in the beginning when we started out as PMF. Think FD reset that with 2.1 or even earlier.

We actually had a Anarchist NPC MF removed from their home System, but it was there to stay after the update.