I also thought that it may be the case, but I checked it, and when I remove the mock card, this line of "Removable Storage" disappears, and I only have the line saying "Onboard Storage" (while with the card I had both lines).
However, I now noticed that it actually makes (a bit) sense, because the Onboard Storage reads 834MB, and the Removable reads 160MB, which together is 994, quite close to the 1GB that the Kobo is supposed to have...
So maybe it is possible that for some reason the mock card makes the Kobo show this hidden memory, but to me it still seems as some sort of a bug...
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