I got to the second spot, and stayed there with not a single back link, and a 2 word domain keyword. It was popular enough, and had loads of pages of content, and was relevant, so i would say it can be done easily.
DId you even read what I posted and then other people replied to? They are just blocking you from crawling through their links with a 3rd party tool. Stop worrying what they are doing, because what they are doing is creating massive amounts of pages all optimized to their content within their own site. MASSIVE amounts. You should be doing the same thing.
2.) 301 Redirecting a penalised domain passes link juice, yes, including link-based penalties.
301 redirects don't pass penalties. If they did, you could very easily buy hundreds of penalized sites and take down anyone you wanted by simply redirecting to them. Google can't allow negative SEO to be THAT easy.
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