Dude, this is one of the craziest things I think I've read on HN

First, that a legit dealer could/did(does?) sell third-level domains at all (Verisign, no less) Second, that the top-level is staying available, allowing for second-levels to be bought/sniped like you mention.

If you do lawyer up and need help with legal fees, I think this would be a worthy cause.