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Wow, you guys are really butthurt about someone breaking a clause that doesn't exist in proper VGC and winning Worlds.
When I first saw the video of this match I laughed my ass off, because I knew how much Smogon players would be bitching about it. Nintendo's going to run their tournaments how they want to run them; they're not going to follow another set of rules just because an unofficial competitive community wants certain clauses or limitations imposed when they play.
As others have already stated, the person who lost in the finals had an answer to the sleep-spammer on their team and chose not to bring it in.
Just imagine how much rage there'd be if an evasion strategy won. Or someone packed an OHKO move and it connected in the finals. Hell, I expect this kind of idea to carry over to other non-Pokemon games Nintendo will run tournaments on in the future.
