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Well..
https://gtm.steamproxy.vip/discussions/forum/9/
Considering the number of posts complaining about their bans sort of shoots down your theory.
They don't need you to send them a video or any info. When you report someone they get their info, and it flags the match and they can go a watch the whole thing already on their end.
of course a lot are automated.
Or would you like to check tenthousands of reports daily to see if those are valid?
More importantly, a lot of people who think they see cheating are actually seeing game bugs caused by latency or just someone who's legitimately good at a game. Reports aren't actually all that useful for deciding who to ban (but they can help to find cheating software to add to VAC, and for other kinds of bad behavior they are much more useful).
But when VAC sees evidence that someone has a specific cheating program running, that's enough to issue a ban. You don't need a person to watch them play because the code that checks for that cheating program is designed to only catch it and nothing else.
automating stuff and careing are two different things.
You certainly wont find any company with a big mp game who wont Automate most stuff in that case. as everything else would just be burning money to slow everything down.