As an important source for large geomagnetic storms, an ICME-in-sheath is a completely shocked interplanetary coronal mass ejection (ICME) stuck in the sheath between a shock and host ejecta. Typical characteristics are identified from coordinated multi-sets of observations: (1) it is usually short in duration and lasts a few hours at 1 AU; (2) its solar wind parameters, in particular the magnetic field, seem to keep enhanced for a large range of distances; and (3) common ICME signatures are often lost. The host ejecta could be a single ICME or a complex ejecta, being fast enough to drive a shock. These results clarify previous misinterpretations of this phenomenon as a normal part of a sheath region. The ICME-in-sheath phenomenon, together with a preconditioning effect, produced an extreme set of the magnetic field, speed and density near 1 AU in the 2012 July 23 case, all around their upper limits at the same time. This is probably the most extreme solar wind driving at 1 AU and enables us to estimate the plausible upper limit for geomagnetic storm activity. With an appropriate modification in the southward field, we suggest that a geomagnetic storm with a minimum $D_{rm st}$ of about $-2000$ nT could occur in principle. The magnetopause would be compressed to about 3.3 Earth radii from the Earths center, well inside the geosynchronous orbit.
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