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Indeed. That one was there since the very first real HBC release, where the cursor was shown to those who had "cracked" the April Fools alpha release of HBC (which was just the Twilight Hack SD loader packaged as a channel with demo time restrictions enabled!)
At the time we tried very hard to persist that state forever. It was rather hard to clean a Wii and make the middle finger go away. Eventually we got rid of the persistence though, the joke had run its course. So now you only get it if you do something like WAD-copy HBC.
