There are also ways to farm Merit Points so the Mods/Merit Sources have to be careful, here is just a scenario:
You create 10 accounts, then you start spamming with all 10.
You report all the spams accounts you created from your main account and there you have Merit points for reporting spammer.
There always be someone trying to cheat the system unfortunately, so Admins and Mods have to be aware of this.
Where did you get that information? I didn't read anything about earning merit points by reporting some posts to moderator but if that is true then your given scenario will likely happen in the coming days