Title pretty much sums it up. A member of our faction asked me the question. If you have a small backpack and it is full of items and you put that inside a larger backpack with other items is that considered an exploit and therefore a violation of the golden rule?
I'm no expert but personally I wouldn't see it as an exploit. When you fill the small back pack I would assume its still the same size. Thus when you put it in a larger back pack it just takes up some of the larger ones space. Thus not being an exploit more of just using space effectively. Others might have a different view.