from the "pending payout" (not from your wallet) and it gets proportional added to all other current pending payouts.... so for example if the total reward pool sits on $1000 and we have only 2 authors that have exactly the same votes (weight) then each of them sees $500 as pending payout... now if before the payment the one gets downvoted/flagged to $250, automatically the other one without any change on votes will increase his pending payout to $750 (for a total of $1000 again that will give away the system as an end result)