I've heard the "pancake" term but never heard $5,000 chips called flags. Never even seen a red, white, and blue $5,000 chip.
I spent 15 years at the FQ's around these guys but have not been close to the BIG action since late 1996.
At the QPC we used to set up stanchions around a table and post a security guard so the big game would not be bothered by the sweaters.
This was when the 6A regs only covered cash in and out and not chips.
The boys bought $1 & $5 chips, renamed the value whatever they wanted and settled up after the game.

I've often thought, the little stories of what poker room mgrs have witnessed during major tournanents and BIG games, would make a great coffee table book.

At the QPC 1996, Eskimo won over $100,000 in a tournament. He had 6 partners including 2 world champions and was only holding 5% of the total for himself. He would not sign the W2G. Tournament Director Steve Morrow would not pay him. His 6 partners were all sitting quietly waiting for the outcome of this little show. After 30 minutes of watching the argument between Eskimo and Steve, I told Steve, "lock the money in a safety deposit box and we will let gaming sort it out." Six guys jumped 3 feet in the air and pounced on Eskimo. Five minutes later he asked for a pen and signed.

These guys are a real trip to be around and I throughly enjoyed everyday of those 15 years but life is much simpler operating $4 & $8 poker games.