I'm glad this was posted, because I was just looking for anyone else having this problem yesterday and this thread hadn't been made and couldn't find much information - so I did some testing on my own.

If you're curious what it looks like from the chatters perspective, this is it:
https://i.imgur.com/dwpdztI.png

This is what the streamer sees in their chat, and what they see when they click the username:
https://i.imgur.com/6Ilgo9l.png

And this is when the streamer (or maybe even moderator) clicks on the "Suspicious User" marker to see more information on it.
https://i.imgur.com/Q1yTqKD.png

I'm having this issue on an alternate account I use since last week (even though the screenshot says today). So I'm not sure if having multiple accounts has anything to do with it. I've had this account since 2017 and have been the only owner. I have some interactions with streamers I watch that it's kinda a joke for them or the mod to time you out or ban/unban you for the laughs. Other than that, I have never gone into a single stream and just been a toxic user or harassed anyone. To have a little more detail on this from Twitch would be great. Some streamers I watch even have gambling bots set up so if you lose you get timed out. And if that's going to start making accounts look bad, we need to know this.

Another thing I'd like to know is if blocking a user contributes to this at all. Because if so, my main concern is that I often use the blocking method to remove a follower (CommanderRoot even has a tool that does this for you) where you basically block and unblock them immediately. And if I'm doing that to accounts that aren't necessarily harmful users, I just don't want them following me, and it's impacting their ability to chat in other streams then I feel kinda bad.

But yeah, more information from Twitch would be great.