[Hell-met]

Valve taking no action to fix it may indicate that Valve thinks it's working as intended, which is one reason I don't ban people for it. This bug/exploit/intended behavior has been around for a really long time. Most exploits get patched in one or two patches after being discovered.

It would have proper visual effects if it was intended

Right now the flames look normal when directed into water, which makes little sense

You have to remember it only took them a year and a half to fix the stickylauncher exploit.