So let’s say I’m critical of a huge account with many followers and they falsely report me as spam, making my posts hidden to a huge group of ppl and effectively censoring me. That seems like a sane and reasonable system to you?

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In that case, people either agree with the account and you should be hidden or they don't agree with the account and can blast on the account to change it. Either way, like a free market, people will sort itself out.