I don't know if the price will drop right away, but if one guy can completely downvote everything another person does - that's a problem no matter who is getting flagged, no matter what for.
I stopped giving a fuck about the Klyes of the world when I became financially independent (not because of this site). The problem is Steemit. When one guy can have that power, the whole purpose of this site is a fail. Add to that that there is no longer mining, which is huge because PoW is the whole reason cryptocoins work in the first place, then the downward trending price in terms of BTC, the lack of quality content (probably from others leaving), the poor quality of people with big accounts (craig grant and klye and trevon)...I could go on and on.