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RE: Whales are flagging people and their bots maliciously and making Steemit look scammy.
Im not sure about it being quite like that, but flagging as sabotage has to be punished in some way as well I would think.
Looking at the @asshole and @blacklist downvotes, they're being made at -1% only, so it's barely any negative rshares on the posts they vote. If someone's downvotes are malicious and a problem, @anyx has set up the @seraph bot to counter their votes.