Almost reaching 300K distinct bot IPs
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Blocking IPs been flagged as residential proxies only on this criteria is indeed risky and can lead to false positives. Indeed, these IPs may be (heavily) shared. That's a criteria you can take into account to block/challenge (e.g. with a CAPTCHA, 2FA on login) traffic.
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Moreover, another important factor is when has the IP been flagged as being a residential proxy. The long the riskier it is to block based on this criteria.

