A report isn't marked as such, it just becomes 'unhandled' when it's been in the queue for x amount of time and is eventually pruned.
From my perspective as a user, a report becomes "unhandled" instantly.Any chance you can nominate a "snitch of the month" for each month?
When a report is market as "unhandled", is it because moderators were busy or something or is it a way to acknowledge the report is not bad but not so good as to act either?
Consider such a report as almost bad. If it was good, it would have been handled. Since it wasn't the mods don't agree with you, but they are also not sure how to look at it.