How does this work with Clippy (the only paperclipper in known existence) being tempted with 3^^^^3 paperclips?

First thought, I'm not at all sure that it does. Pascal's mugging may still be a problem. This doesn't seem to contradict what I said about the leverage penalty being the only correct approach, rather than a 'fix' of some kind, in the first case. Worryingly, if you are correct it may also not be a 'fix' in the sense of not actually fixing anything.

I notice I'm currently confused about whether the 'causal nodes' patch is justified by the same argument. I will think about it and hopefully find an answer.