This was super informative! Anyway, what about requiring a human moderator to double check links with punycode in them? Ie show the warning until the moderator has had a chance to look at it and confirm it's not a homograph attack. I don't know how much of a burden that would be, but if there aren't that many punycode URLs, then the amount of work they'd need to do could be very low. And if the cost does turn out to be high, you might be able to use Mechanical Turk.
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This was super informative! Anyway, what about requiring a human moderator to double check links with punycode in them? Ie show the warning until the moderator has had a chance to look at it and confirm it's not a homograph attack. I don't know how much of a burden that would be, but if there aren't that many punycode URLs, then the amount of work they'd need to do could be very low. And if the cost does turn out to be high, you might be able to use Mechanical Turk.