NIP-65 allows to report a user with kind1984:

https://github.com/nostr-protocol/nips/blob/master/56.md

I reckon some clients use these reports to hide/mute/block some pubkeys reported by some your follows.

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I guess if you report someone, you most probably don't want to see their content anymore. Kind of make sense.

That's how Amethyst works, afaik.

Correct! 🤙