I think the others have it fairly well covered but to reinforce this bit.
We keep an eye out for patterns, so we may notice when specific characters/accounts are reporting specific other characters.
At the end of the day, the most other players can do with their report is temporarily hide a post. It is up to the moderator to determine if the post may violate policy or not and either restore it or remove and penalize it.
Keep in mind, there are some posts that we may not penalize but we will remove because they are either off topic, not appropriate to our forums, etc…
I wasn’t aware that you could see who was reporting the post.