Red paper section 6
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The mitigation method provided is invalid; RSSI can only provide info about the distance between you and another node, and not the direction, thus you can't detect clusters of nodes.
What is being described here is fast switching between virtual nodes. Since it is not expected that nodes are continually connected, a machine could switch between virtual nodes to hide any inconsistencies with the RSSI values. This mainly comes into play when trying to do a DoS or mining of XYO by appearing as multiple sentinels.
The XYO Network pays to individuals based on being involved in the Proof of Location for the specific query. This means a person carrying out a Sybil attack wouldn’t have an advantage. They still need to be in the same physical space as the device being queried at the moment of the query. This further diminishes the advantage of showing up as multiple nodes.
That being said, this is a valid scenario so it should remain as a discussion in the red paper. The threat level would be minimal.