Modern PPTQ. Routine beggining-of-round deck check. We found two unsleeved copies of Jund Charm with the sideboard. The card in mention is in deck's colours, Modern legal, technically could be played. That results in 17 card sideboard, no Jund Charms registered. When questioned, player states, that he bought them between rounds and had nowhere else to put them, had no intent to play them or otherwise cheat. Head Judge believes him.

Now, as per my understanding of current IPG this is a Tournament Error – Deck Problem. The standard penalty is a Warning and no upgrade paths seem to apply. Is that correct? If so, why, as this seems to be a situation with great potential for abuse?

Specifically:

Originally posted by MTR 3.5:

Cards in different sleeves, tokens, and double-faced cards for which checklists are being used are ignored when determining deck (not sideboard) legality.

You are correct, this is TE - Deck Problem, Warning. Since the Head Judge eliminated the concern of Cheating, then this is the only infraction that matches the error. Unsleeved is different from any sleeves, but they were stored with the sideboard and thus can determine deck legality.

As for abusability, (a) that's why we investigate - which the HJ in this case did - and (b) it's rather difficult to sideboard in two cards that weren't sleeved, while taking two cards out of their sleeves, without being noticed. Not impossible, obviously - but it's just not a very likely method of Cheating.

Hopefully, the HJ also directed the player to find another way to store those cards!

d:^D

Derf, I missed the critical point of this.

Because the problem was discovered by a judge, during a deck check, the upgrade to Game Loss does apply.

d:^D