A village is full of clubs. Each club is named after one of the villagers. A villager can be a member of any club; they do not need to be a member of the club named after them.
It is known that the set of all suspicious villagers forms a club.
Are there any spies in the village?
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We are given that the set of all SUSPICIOUS members forms a club. This club must be named after someone. Call that person Jim.
Assume Jim is not a member of the club. Then he is not suspicious. Therefore he must be openly a member of the club. This is impossible.
Therefore, Jim must be a member of the club, but not openly. He is therefore a secret member of his own club, hence a spy.