Looks like everyone has a different definition for "bogus usernames"
sentinel.tcl defines them the same way as eggdrop does--usernames outside the 041-176 octal character range. There were two reasons flooders would use them. Firstly, eggdrop had a really dumb feature that caused it to repeatedly kick users who joined with a bogus username. It would flood itself off doing this. It still has this feature, but it can be toggled with the kick-fun setting.
Secondly, it allowed flooders to use mIRC colour codes in their usernames, so that the "nick has joined the channel" lines would have coloured characters and backgrounds. This made the join/part apsect of the flood more impressive, and if you set the background to mIRC's default for joins/parts (green) it would obscure the flooders' hosts for many mIRC users.
If more than a couple of users with bogus usernames joined the channel in quick succession, you could bet that the channel was about to be flooded. sentinel.tcl preempted this by locking the channel if a set number of users with bogus usernames joined. But I suspect it's very much a legacy feature now--I believe few IRC servers will allow you to connect with a bogus username these days.