Maybe they should bring back the down vote button and put some requirements/consequences around the flag. If a person flags a post or comment as spam or improper and it is found to not be the case, the flagger is the one who takes the hit on their reputation instead. Just a thought.
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That would be my preference. I do not like that the flag button is the only way to downvote and requires rep damage. For independent incidents and small problems it isn't necessary to give someone a bad rep for it, but the platform currently makes that impossible.
Direct Hit on the Nail, consequence for using the button without further investigation.