Omega will either award you $1000 or ask you to pay him $100. He will award you $1000 if he predicts you would pay him if he asked. He will ask you to pay him $100 if he predicts you wouldn't pay him if he asked.
Omega asks you to pay him $100. Do you pay?
This problem is roughly isomorphic to the branch of Transparent Newcomb (version 1, version 2) where box B is empty, but it's simpler.
Here's a diagram:
I believe you haven't yet realized the extent of the damage :-)
It's very unclear to me what it means for Omega to "implement the counterfactual" in situations where it gives the agent information about which way the counterfactual came out. After all, the agent knows its own source code A and Omega's source code O. What sense does it make to inquire about the agent's actions in the "possible world" where it's passed a value of O(A) different from its true value? That "possible world" is logically inconsistent! And unlike the situation where the agent is reasoning about its own actions, in our case the inconsistency is actually exploitable. If a counterfactual version of A is told outright that O(A)==1, and yet sees a provable way to make O(A)==2, how do you justify not going crazy?
The alternative is to let the agent tacitly assume that it does not necessarily receive the true value of O(A), i.e. that the causality has been surgically tweaked at some point - so the agent ought to respond to any values of O(A) mechanically by using a "strategy", while taking care not to think too much about where they came from and what they mean. But: a) this doesn't seem to accord with the spirit of Bongo's original problem, which explicitly asked "you're told this statement about yourself, now what do you do?"; b) this idea is not present in UDT yet, and I guess you will have many unexpected problems making it work.
By the way, this bears an interesting similarity to the question of how would you explain the event of your left arm being replaced by a blue tentacle. The answer that you wouldn't is perfectly reasonable, since you don't need to be able to adequately respond to that observation, you can self-improve in a way that has a side effect of making you crazy once you observe your left arm being transformed into a blue ... (read more)