Just take a look in the log section; the proxy catches the connections to a specific URL, and replace the file provided by the $0N4 servers by the one in your HDD, which indicates to your PS3 that you have a newer version than the one indicated by the replaced files.
Basically, a proxy just spoof a connection. From Wikipedia:
As an example, notice that my PS3 is trying to check the firmware version from this URL:
Code:
http://fus01.ps3.update.playstation.net/update/ps3/list/us/ps3-updatelist.txt
That URL will download / read a .txt file which have the following information:
Code:
# US
Dest=84;CompatibleSystemSoftwareVersion=4.8300-;
Dest=84;IncrementalUpdateVersion=000105f2-000105f2;ImageVersion=00010871;SystemSoftwareVersion=4.8300;CDN=http://dus01.ps3.update.playstation.net/update/ps3/image/us/2018_1011_69b4529fd584523cf37e6d29107b9a8b/PS3PATCH.PUP;CDN_Timeout=30;
Dest=84;ImageVersion=00010871;SystemSoftwareVersion=4.8300;CDN=http://dus01.ps3.update.playstation.net/update/ps3/image/us/2018_1011_69b4529fd584523cf37e6d29107b9a8b/PS3UPDAT.PUP;CDN_Timeout=30;
As a result, my PS3, which have a lower firmware version, will request to be updated. If I use the proxy, it will replace the .txt provided by $0N4, which have this information, instead of the aforementioned:
Code:
# US
Dest=84;ImageVersion=00000000;SystemSoftwareVersion=0.00;CDN=http://dus01.ps3.update.playstation.net/update/ps3/image/us/2007_0322_3a5f49bcee3948301aa698ed57ecb10e/PS3UPDAT.PUP;CDN_Timeout=30;
As you can see, it states a firmware version "
SystemSoftwareVersion=0.00", so it will never request an update. You just have to ensure that the proxy spoof the right URL, the right file, and the right version.