This is a privilege escalation attack, plain and simple. Using this, a non-moderator user can instruct the Community ♦ user to take disciplinary action against other users. In fact, they can probably answer ban other users under the right conditions. It's also difficult for moderators to detect when this is going on unless they're specifically looking for it – most moderators are aware of the issue, but this is still another thing for them to look out for.
Once this is fixed, we'd need a script to detect when people have been banned via this method, so moderators can review each case and correct them if necessary.