Saw this mentioned on another thread and wanted to clear this up for anyone (like myself) who buy and sell on StubHub. StubHub allows certain 'special' (repeat) sellers to sell flashseats tickets to events. I know this because i tried to sell Rockets tickets on there once and could not fulfill the order because they would not let me transfer my flashseats to the buyer and vaguely explained it that way. So, those who post flashseats tickets do legitimately have them and can transfer them, but i would recommend buyers use the same email address for both your flashseats and stubhub accounts. As an added point, i know people who have been screwed over when ordering electronic non-flashseats tickets to events, especially sold out events, on StubHub. The seller sells the tickets to multiple buyers and forwards the ticket PDF to each one, so whoever goes in first gets in and the rest get screwed. At least flashseats prevents that, which is why i am confused as to why StubHub does not allow all sellers to sell them (at least not yet).
I've spoken to Stubhub at length about this, and their official explanation to me is that they have a partnership with the Rockets organization for the Rockets to sell their excess/unsold inventory through Stubhub via Flashseats. I'm not aware of any individuals that are allowed to do this. As for people selling bogus e-tickets, yes, that does happen (mostly by accident e.g. sellers list the tickets on multiple sites where they are purchased simultaneously before the seller can de-list), but the penalties for the seller are significant and the consumers are always refunded and in some cases given credit/vouchers for additional value beyond the ticket price (at least as far as Stubhub is concerned).