Re: Was this collusion and what should I have done about it?
If there isn't a better example of blatant collusion, I'm not sure why not. I would have immediately, and QUIETLY gone directly to the floor and explained what happened. If the floor refused to do anything about it (like separate the two permanantly) then I would have left the room, and probably made sure I explained why to the floor in front of the whole table, right in front of the colluders.
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