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If they are using the report system to actually threaten other users, (not just saying reported :3 or something moronic like that), that is also an offense.
If they're just rejecting your offer, ignore them and move on, little else for it.
Oh no, definitely not. Simply giving an offer someone doesn't like is no offense whatsoever.
But then, if you do make a terrible offer and they accept it, you may get banned for that, and permanently. Say for example you offer a few low tier hats for an unusual, and because the trader is inexperienced, they accept. That could be considered sharking, assuming you deceived them about the hat's value.
There is, of course a fine line between "lowballing" and sharking. Just remember that although posting a bad offer (not so bad that it's considered spam, like offering 1 scrap on an Unusual) is not a bannable offense, insulting the OP, or anything like that in response to your offer not being accepted, can be punished.
Ah, but it is (or would be) your fault. Taking advantage of a person not knowing the value of an item is an offense, to the degree where it could be considered sharking.