This is a straight forward question itself
We have the ability to clear other people's flags, so that's what will happen.
If it's a case where someone is misusing the feature on purpose, then we'll go have a chat with them.
The mods get notified that something has been flagged but if they don’t see any reason for the flag they will most likely ignore it thinking it was a false flag/misclick (or clear the flag idk if they can do that though)