This is a discussion on Rules on Sitting Out within the online poker forums, in the Poker Rooms section; I played a tourney at ACR - $500 GTD - 8- MAX w/ Late Registration (30 levels).
What are the rules on players Sitting Out?
The rules of sitting out in tournaments are, that you are still posting the blinds and antes, and then your hand is folded, every time someone puts in a raise. If you dont have enough chips to pay the blinds or antes, you are forced all-in preflop.
In normal (non satellite) tournament sitting out is always bad for you in any poker site as you are folding every hand but still paying antes and blinds. If you had so many players on sitout, maybe there were problems with soft? Similar thing was recently at pokerstars in new year tournament