Long time sub here. I rarely post but this is getting out of hand with the pvp hacking, racist comments, etc. How about using Volunteer Moderators to help monitor/catch these incidents ? Small change to the volunteers UI with a couple of capture/report functions (or like another very popular MMO, you can actually empower them to do something about the incident). Not gonna whine about what happened but it is getting very frequent and is ruining gameplay. BTW, your reporting process is a PiTA. Your reporting system makes it too difficult to report cheating . I have used it in game to report an incident and behavior. If you want the details on the that, contact me. You have my information. After talking with a few other players about one such incident I discovered that many casual players have no idea how to screen capture/ text capture any evidence of ToS non-compliance. As it seems like (speaking from only my experience playing this game) most of the players are casual, that would affect report rates.
As far as the moderators, make them go through an interview process just like a job (since it will be somewhat). I bet you could find a few good people. Wouldn't need many since the old servers are merged. I think it would go a long way to making the community feel like they are being "heard" when they can get an in-game response when they report cheating / bad behavior / etc as opposed to the "2-3 day wait"/"never hear from again" options that seem to be the current modus operandi. Heck, if you use experienced players, they might even be able to help with other in game play/ teaching issues. Just a suggestion.