Obviously Little Mouse thinks that losses happened or he wouldn't bother to seek recovery from the participants. It doesn't really matter what your personal definition of "scam" is.
Due to his deception/abuse, we had resources misused. A campaign manager can understand it. If due to someone's deception, misuse of resources/funds isn't a scam, I don't know what it can be called.
Well, it's a forum with many mechanisms in the feedback system. If someone thinks that a wrong flag is created, they can oppose it.