"To accommodate the new system, players now have a distinct pool of reports for Overwatch separate from communication reports. Reporting a player for Overwatch consumes one Overwatch report regardless of how many times you report that player in the game. As before, communication reports are still issued at the end of the game."
Literally says reports for Overwatch
The question is why do unverified reports still lower BH score? I am seeking a genuine answer here. I love this game but this is incredibly frustrating that rage reporting and false reporting is still a thing. Overwatch was supposed to fix this but it's been relegated to cases with overly excessive reports, random unverified reports still consume massive chunks of one's BH and commends have little to no effect. You can literally have 30 commends and 5 reports and your BH can drop by over 500.
Source: https://www.reddit.com/r/DotA2/comments/r6if6i/overwatch_arrives_in_dota/