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The ninjas will only warn you so many times. If you have a lot of warnings on your ban record, they'll up the ante to bans. If you have lots of warnings and bans, then you'll only be banned for more and more time.
Also, depending on the violation, you might just be banned outright. Some things will be an automatic ban, no warning required.
So no, the warning system is not broken. PM me for details if you want or need further embellishment Dark.