I keep getting server 500 errors from steem.supply...
As for the "what to do"... are flag wars really what the flagging is for? Punishing accounts for taking advantage of the way the system is built?
I feel like they're not. That they're there to help identify if content is/isn't abuse. If his content is legit, and you're flagging it anyway, it's a sort of misuse of the flag... and thus a form of abuse you're now committing yourself.
Flagging does more than just reduce reward pool... it hides posts. Specifically to hide "bad" content.