Instead of flagging links to questionable news items, Facebook will instead hide them. Which is nice, but it still means we have to trust the algorithm Facebook uses. (Don’t trust Facebook to filter your news for you.)
False news undermines the unique value that Facebook offers: the ability for you to connect with family and friends in meaningful ways. It’s why we’re investing in better technology and more people to help prevent the spread of misinformation. Overall, we’re making progress. Demoting false news (as identified by fact-checkers) is one of our best weapons because demoted articles typically lose 80 percent of their traffic. This destroys the economic incentives spammers and troll farms have to generate these articles in the first place.
Source: News Feed FYI: Replacing Disputed Flags with Related Articles | Facebook Newsroom
I’ve never seen, to my knowledge, a “disputed” flag.
I believe it was a test they didn’t roll out to the whole Facebook community. I can’t remember whether I saw it live myself or just in screenshots from bloggers analyzing it.