Now that I got that out of the way.
I would like to point out that having automated moderation tools like the report feature opens said moderation to abuse by less scrupulous players. Live real human Game ops/mods even when anonymous can be called to stand to and answer for their BS. The report tool seems to have no consequence for abuse.
So if HTC isn't going to use living people to moderate the game then there should be some way to punish people who abuse the system, specially players that abuse the system to grief other players.
Maybe HTC should go threw the logs and if the report and mute was not warranted those that abused it should be held accountable and punished. Such as for example take away chan 200 for a month, mute them for a week, and/or for the very bad abusers just kick them out of the game, we don't need their kind here as they only hurt the game and drive away players.