I wonder if this "game" is the same everywhere
What are your local rules for it?
This is how I know it:
Punishment:
Basically everyone at the same age as me just knows this and (involuntarily) has to play along if challenged...
When I grew up, it was "below waist level" and resulted in a free punch to the shoulder, but there weren't any of the other rules.
(Edit: wait, I forgot that if you flinch, the puncher gets to go again)
It probably also was below waist level back in the days. I don't remember it exactly anymore. But it probably changed over time because everyone kept protesting with "eye level!" when it was too high.
Punishment for flinching is great xD
Back in middle school the punishment was a slap to the back of the neck, and I never heard anything about putting your finger in the π to avoid it. Simpler times.
Also which country are you from? Here in german, that are the rules. Except we stopped going through with that years ago, probably at the age of 16.
Switzerland. It also stopped back then, but somehow started again recently. Not sure if it's only in my stupid group of friends though xD