Moderate, by definition, is simply between two extremes ... an administrator is one extreme - a user is the other. Moderating USERS is different than moderating FORUMS. They should have the ability to moderate USERS without having to ADMINISTRATE the users -- for security and organization reasons - allowing the option for a moderator to moderate a user would be beneficial. Trying to make an excuse on semantics makes no sense when we're on a website dealing with hacking the "official" way.
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