Unfortunately he's right.
http://www.uo.com/fof/fiveonfriday116.html
In factions, when inside the stronghold, you can bagball or candelabra every tile to your hearts content. Only stipulation is that players must be able to pick up items without being at one tile for 3 hours. So you can't break a box of 125 candelabras on each tile and get away with it.
Bagballing 20 (or however much it is max) high is allowed, on every tile, everywhere in the stronghold.
IMO with those hacks going around doing this is just a major waste of time, 2/3 of the kids in factions can run right through the bagballs like they aren't even there.