Don't mean to get all TS on you.
I think the text of the flag banner is the same for type 2, 3, and "legacy" negative rating.
I meant not merely a [suspected, alleged, etc] scam (that'd be type 1 flag or negative rating). For type 3 there needs to be a violation of a written contract that resulted in damages. There, now we're ready to join the guild.
So, it's looks OK for the so called "emotionally driven DT" to ignore the selective KYC scamming and non verifiable excuses from the accused mergly because the victim is abided by bullshit TOS or even as you said due to a mistake in selecting a correct type of flag.
You are just making the situation more complex by making the victim look confused, rather you could have just instructed him to do the right thing in the first place as Royse777 tried to.