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2. Reports are investigated, there is no automatic ban based on report numbers.
3. Reports are investigated. That's how.
so it dosent matetr if u get 1000 reports or 1 report?
Correct. If someone gets reported the report gets investigated. If Steam checks their logs and see that the accusations are true he may get a trade ban.
Reports by uninvolved users are actually detrimental to the case, because Steam sees that those users had nothing to do with that reported user and may dismiss the whole case because of it.
Only the scammed user should file a report, nobody else.