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The proof is all over the blockchain. You can see despite all the flags that happen daily t he voting power of my account, my bots, and anyone hardly fluctuate.

There are so many people pulling from the reward pool and so much Steem Power the change to any one person is insignificant.

Even in your scenario (which is stupid by the way) if one entity owned 50% of the steem power and they flagged someone for $100 they would at best get 50% back. Self voting would be way more profitable. But the one entity that owns 50% doesn’t upvote so it is a moot point as it doesn’t benefit them at all.