The fargo system is in its infancy. We can learn from the history of chess since it's elo system has been around far longer.
After a couple minutes of googling, I found a source of this exact problem in chess. It's very similar to the situation in pool. Most women play almost exclusively in women events, while some play against men. They actually manually added 100 points to all female players because of this issue:
http://www.3-dbaseball.net/2015/05/gender-in-chess-part-2-elo-ratings.html
5th paragraph
This is not a very good comparison. Chess was doing goofy things at the time (before the adjustment) that actually treated women differently from men--like bringing men and women into big tournaments with a rating floor hundreds of points apart.
Pool are Fargo Ratings are in a much different situation.
I'm going to give a geography example before discussing the male/female rating comparison.
Suppose the entire world of pool players--with the exception of one isolated island in the south pacific--all have accurate ratings. Every player is rated accurately with lots of games and--off the island--we do a good job predicting the results of a matchup between any two players.
The island, though, has a group of 100 players none of whom has played off the island. But these 100 people play one another all the time and are rated accurately relative to one another.
The problem is the islanders, as a group, are 100 points too high.
A 600 on the island plays like a 500 in the rest of the world
An 800 on the island plays like a 700 in the rest of the world, and so forth
Now let's suppose SVB goes on a fishing trip with a friendly host someplace in a small boat and gets stranded on that island.
Shane plays the local hero, who has the same "rating" as Shane but really plays 100 points lower. They play a race to 100 and Shane wins 100 to 50. Then Shane gets picked up by a rescue boat
What happens?
It depends on whether the rating update algorithm is a sequential one (the easy way to implement elo-type schemes) or a simultaneously optimized one (what we call ab initio global optimization).
In the sequential approach, SVB and the local hero exchange a bunch of rating points because of Shanes big win. But the other islanders don't change yet. Then when the now-lower-rated hero plays an island shortstop, some of the hero's rating adjustment is rubbed off on the shortstop, and so forth. Eventually the whole island is down (in the right direction) but only by a little bit. It will take many more stranded boats of pool players to really fix the problem.
The ab initio global optimization--what we do--is very different. With our approach, as soon as Shane leaves the island, every player on the island is lowered by 100 points. Every single one. The only connection between an average player on the island and a player in Peoria IL is through the hero's match with Shane. So to the extent Shane or the hero had a good day or a bad day in that 150 games, the island could be shifted 20 points or so one way or the other. But they are in the ballpark.
If another boat with an average league player from Springfield OR gets stranded on the island, and that player plays another 150 games with an islander (or 15 each with 10 islanders), then there is 30 total games coupling the groups. Now things are pretty much in sync.
more on men/women in pool later