ROTSIP: Unfortunately this cache must be archived. It is currently being handled as a Virtual Cache by the CO despite this not being permitted by the guidelines.
Please see http://support.groundspeak.com/index.php?pg=kb.page&id=63
Which states "The word "grandfathered" means to grant a special exception. More clearly, to "grandfather" something is to allow certain situations to exist based on an older rule (this is the "grandfather clause") even though a new rule is in place now.
For example, cache types like Virtual Caches and Webcams are no longer accepted as new listings today, but those that already exist remain as grandfathered caches as long as they continue to be maintained by their owners.
How do I hide a new Virtual, Webcam or Locationless cache? I don't see these options on the form.
Geocaching.com no longer accepts new submissions of these cache types. Existing Virtual and Webcam caches are "grandfathered" and are still available for you to log. All the Locationless caches were archived and locked in January 2006. The new home for these types of caches is Waymarking.com."