What it is is that the sparkles are not actually there, but are just used so you can clearly see who's possessed. In AO the Sligs shot you because they could tell by looking that the Slig was possessed. Alf says possessed Sligs had glazed eyes, although how the other Sligs saw that beneath the mask is beyond me. Maybe it's something else. By MO Abe has practised and refined his possession abilities, and so other Sligs don't notice. Ignore the sparkles, only you can see them (which is why it's silly for there to be sparkles hanging around Lulu in the good ending of MO).
Notice that Sligs don't realise their comrades are being possessed even if they're standing right next to them when they scream out. That's just an example of how bad the AI in MO was - you can actually walk past Sligs while invisible carrying Mudokons, and they won't notice anything strange. Or you can pick them up and throw them somewhere, but as long as they don't turn around afterwards they'll just stand there oblivious to everything. And you can walk within feet of a Paramite without it noticing you.
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