I've always been confused about this but from what I understand the red flip labels is ONLY used when ONLY the card itself is being graded. And only the card grade is considered.
Assuming the autograph was issued with the card, whoever submitted it did not do so to get the autograph authenticated or graded, in which case they would need to submit to PSA/DNA and get back a card with a blue flip label. With that service you can request the autograph be authenticated and optionally graded, but the card itself is not considered.
In theory you could have a fake autograph on a GEM MINT 10 card in a red flip, and a "10" autograph on a PSA 1 condition card with a blue flip.
Confused yet?
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