I don't exactly understand what is going on here, but what I can tell is that one or two people got (mad?) defensive since either you or your friend killed them. You guys accused them of hacking? If someone was hacking, then you should report them. Hacking is not allowed on this server. If they were bullying you, then you should report them. I don't think that this is a bad case of bullying, but it still is bullying. It is most likely that whoever you reported or your friend reported is not going to get muted, since it isn't a bad case of bullying. But, if they did say they will change their name so they can't get muted, then that is against the rules. You should report them.