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I understand abuse of reporting to apply for repeated frivolous reporting, sending spam, or similar.
This report could simply be ignored until something else happens.
A user reporting something doesn’t know how the mods decide. Mods will always receive reports, where they don’t think taking action is necessary.
Think what‘s your definition of abuse of report button?
So: PTB
I would have simply dropped the matter at that point and ended the conversation.
A short ban as a warning for wasting time is okay as well, I guess.
The issue here is the person is wasting your time.