It’s impossible to know if he’s botting or just a no-lifer. It’s what I would call a “dick move” to place 30 cloaky Arazus all over an entire region, but it’s not proof that he’s cheating. CCP would have to determine if he’s botting or not.
Also, bit of a tangent here, but mobile observatories are trash and you shouldn’t waste your money on them. Local is the most effective tool you have to counter cloaky ships, not the mobile observatory. If CCTV is in local, then you just don’t play Eve in that system. Dock up, or go somewhere else. Is it lame as hell? Yes. Is it effective? Also yes.