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It should be warning managers. Keep in mind - one change this year is that players are allowed to continue playing in the minors in the year they "age out". So if your limit is age-25 for a level, 26-year-old players can still play if they were 25 at the beginning of the season. Otherwise everyone's birthday present is to have to change leagues.
If you are seeing other cases that are not being warned, please feel free to report them and we can investigate further as well.
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