...I think Theymos reasoning for the criteria is met. In my opinion there is no doubt that the user attempted to defraud the creator of the flag. A type2 warning is justified.
As you and I have been over ad nauseam in the Bob123 fiasco, a contract becomes activated upon the first exchange of consideration. In this case an agreement was made but not activated. The person in question probably is some kind of scammer, and he definitely did waste the other user's time, but this is not grounds for a flag, this is just the standard of suspicion with another step. This shouldn't be a flagging matter.
Leave them a negative rating and call it a day.