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Since sMerit awarding is not moderated, reporting merit abuse cases would be rather fruitless. In the past, there were some threads were people would list suspected cases (see
Suspected users that are abusing merit 3.0 for example), but all that these cases really led to at most, was for one or both parties to receive negative trust at the time. Trust should not really be for this sort of situations, so after some debate, tagging for this motive I think cooled down a notch. That, and the fact that, as time goes by, (blatant) merit abuse cases diminish.
I’m sure that, if we went on a case by case basis, we could still see some absurd cases that are at best poorly awarded, but the amount should not be significant in the overall picture (lest it should become a hot topic again due to abundant cases).
Only on a few selected occasions has merit abuse been reversed (I recall a hacked account sending merit in large chunks, a Merit Source handing out large amounts too easily, and another case whose details I cannot recall now). That kind of suggests that, in the big picture, the amount of abuse is considered non-significant; at least not large enough to create a formal procedure to deal with it. Those cases that one spots as blatant cases suck, and one would like to be able to get them reversed or nullified, but I figure that introducing judgment over judgment was kept at bay, lest it be needed. It seems not.