Well...this is how it works. If someone, anyone, flags your video or anyone elses (even mine), the video is brought to the attention of a special group of YouTube staff who review the video to determine a course of action.
YouTube internally keeps track of who is flagging videos...if someone flags your video a 1000 times and there isn't anything wrong with your video it is more likely that YouTube will investigate the person abusing the flagging system and may take action against them.
There have actually been tests where people have asked people to flag perfectly acceptable videos just to see if they can get them removed...this video has probably been flagged 1000's of times by different people...and it's still up. If you like my videos, please share and subscribe to the 411 talk zone radio show on Youtube. Tune into the 411 talk zone radio show every Monday from 6 pm to 8 pm on blog talk radio with host Leon Jones. Guest call in number is 215-383-5785.
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