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Any minor leaguer who signs a contract in MiLB on or after July 1st cannot be signed in AFB until the upcoming offseason. Effective immediately.5/6/12: International free agents signing minor league contracts must be signed by an MLB organization prior to being eligible in AFB. Documentation (reputable baseball news source) must be provided upon request.
It was indeed a mistake to allow it, but as you implied, if voided, the GM may have been able to make other transactions with the money in free agency. I do think there were few enough cases for this to have a minimal impact.
I think Soler was the glaring faupaux!