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Ok, decided to investigate further took the leg off the knee with some boiling water.
I'm pretty sure this is the same connection they are using for every hinge-joint in the leg. There IS a round plug at the bottom, but it's connected to a rectangular piece of plastic that plugs flush into a rectangular indent in the sculpt. Hence, no swivel.
You might be able to cut away at the square edges on the joint above the peg, but I'm not sure if that would actually work since the sides are still flush with the peg. Might try, not sure.
