heh, it always seems like Boofo is the one confused, j/k
This hack basically allows you to disable certain members, who say abuse the rights, to using the report-a-thread-to-moderator link.
The hiding part doesn't hide the "report-a-thread-to-moderator" part, it just hides the IP:Logged part, since only admins/mods are suppose to see that anyway. It only hides the "report-a-thread-to-moderator" link if the option for it in the admincp is enabled, as I explained above.