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See page 8 where it states:
"q=0.3
z=0 P=1.0000000
z=5 P=0.1773523
z=10 P=0.0416605
"
that means those control 30% hashrate (q=0.3) can mine 5 consequent blocks (z=5) by 17% probability and even can mine 10 consecutive blocks (z=10) by 4%. so, your reported case of a z=7 consequent block can happen sometimes.
Your surprise is legit as it is widely assumed that no one would control more than 10% of the hashrate so 6 confirmation is sufficient. But, currently this is not the case and if you refer what satoshi suggested for such a case is :
"P < 0.001
q=0.10 z=5
q=0.15 z=8
q=0.20 z=11
q=0.25 z=15
q=0.30 z=24
"
which means if there is an entity with 30% of hashrate, a transaction is safe from double spending (its probability is less than 0.1% ) after 24 confirmations (z=24).
You are right to be surprised as "the mining pools" breaks the original bitcoin philosophy.