I don’t think Sydney knows about the curse. I think he is still the lovesick puppy he was in FTL and is doing Regina’s dirty work in order to get back into her good graces. But it is a good point that if Emma can really tell if someone is lying, she should have seen through Sydney. More likely, she just believes herself to be an impeccable judge of character. Unfortunately she is missing a whopper right now. To me, Sydney seems like such a putz, it is odd that he would be able to successfully fool the human polygraph.
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