Does anyone actually know how to STOP MASS REPORTING?

False reporting, although common, doesn't have much of an impact on everything.

Although many people working together can get a project taken down, it's against the Community Guidelines to do so and if it happens multiple times, the Scratch Team will take action on it. You can't be banned for more than 3 hours from mass reporting, if you are, it was done by a human moderator for a legitimate reason.

Mass reporting already has consequences if you abuse the feature. It is rejected to remove the auto takedown bot.

The Official List of Rejected Suggestions wrote:

3.5 Remove the automatic project censoring system
The automatic project censoring system, with the accompanying temporary account block, is extremely useful to ensure that the community stays safe. Without this system, users who make inappropriate projects could keep making them without immediate consequence if a moderator is not online at the time. That would just expose more people to inappropriate content. While the Scratch Team is open to making improvements to this system, neither removing the automatic project censor nor removing the automatic temporary account block are the solutions.

The thing is, it's repetitive and it's not even that scary.

Yes. You can stop it by educating yourself on the topic to avoid thinking and spreading common misconceptions.

Having the mass report still allow people to edit projects they have unshared is not rejected.
There is a suggestion for it somewhere.

This has gotten overly heated and disrespectful. Closing.