It would likely become quite obvious to mods fairly quickly if certain users were just reporting the posts by the same other users. As other's have said, it would be much quicker and easier just to report the thousand of other shitposts that are already here without having to create more just to boost your report count. I'm not sure what privileges the badges would come with but it probably wouldn't be worth the effort and the amount of people abusing it would be minimal and probably compared with how many people there are abusing the merit system as opposed to using it legitimately.