They flag everybody. It's about "who owns this network - this town aint big enuf for both of us." Haejin is earning way too much money, this network is supposed to be egalitarian, where everybody gets something and the bot programmers get more.
They want the rewards, and steemit is Wild West now. You are a Haejin follower ?
Then you get flagged. They hope that eventually, all newcomers to steemit will be so pissed off that they leave, and everything will be robotic the way it was before. Paradise !