"The Magistrate thinks "some useless underling" involved the Crows and unintentially made it obvious to ZYL that the Netherworld was involved; I'm suggesting that underling isn't incompetent, but actually working for Ghost Face, and therefore not concerned with hiding the Netherworld's activities the way the Magistrate is."

Oooh, this is so neat and would explain what's happening, yes! And both sides happen to have the same goal re: Kunlun's memories, right? (This is one of the things I don't remember, so it may or may not have a canon answer. xD)