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I tend to give the benefit of the doubt to putting the receiver in the 'legal' position if they're in "No Man's Land"... that is, if they're in a position that could be conceivably on the LOS or off the LOS, then I'd consider them to be off the LOS if they're potentially covering up another eligible receiver, and on the LOS if they need to be for the formation to be legal.
Nobody likes a ticky-tack penalty, especially an illegal formation call based on someone being lined up 2 inches 'wrong'.
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