As for the flag, it should be created only if you suspect that person might steal your funds or you will lose funds when dealing with flagged account. Moron or not, making very bad connections based on "they distrusted me on the same week so they could be alt accounts" or whatever Timelord2067 wanted to say in that thread is not good reason to flag him so I won't support it.
That's a good point. However if a user has a completely deranged habit of routinely lying and raising wild false accusations, then there should be a flag against them so people don't have to expend time and energy every time to respond to his psychotic babble.
Also it goes without saying such a dishonest unhinged individual cannot be trusted in any financial deal, so I believe the financial warning flag against Timelord2067 is really very relevant.