I don't know why people in this situation think their account is now "flagged" or "being watched indefinitely", in my opinion this is just paranoia fuelled, unfounded speculation. Until someone is able reference a genuine source for this information we should stop the propagation of misinformation.
Here is what I consider fact, and this is based on my personal experience with tens of thousand of hours botting, ~100 accounts, countless bans and account recoveries.
STATEMENT: If you are transferring large amounts of gold between characters or mail it will trigger automated insta bans.
REASON: On a number of occasions I've been hacked, gold, goods all gone. Each and every time I submitted a ticket for account recovery. When the gold was recovered the account that collected it from the mailbox was insta banned. This was an automated ban based on pulling 300K from the mailbox. I submitted a ticket, the GM explain that large quantities (over ~200k) would trigger this. The accounts were restored without issue. This has since happened on a number of occasions. If you're going to transfer gold, do it in 100k lots. I recently transferred 400k between 2 guild, I did it in 100k batches per transaction without issue.
STATEMENT: Returning to botting after a suspension or account recovery from a successful appeal is no more risky than botting on a fresh account.
REASON: I've had many many MANY accounts suspended or banned. Those that were banned and successfully appealed were back to farming almost immediately. Obviously I changed my farming habits with them and reduced the number of hours spent farming or the area I was farming but in almost all cases these accounts were not banned or suspended again.
STATEMENT: Submitting a support ticket to a GM on a botting account is not going to trigger any investigation into that accounts activity, they are simply going to do their job and address the support ticket as best they can.
REASON: I've had a number of accounts over the years that have been dedicated to farming and only farming. On occasion I've had need to submit a support ticket and required a GM to contact me, and each and every time this has gone without incident. They resolved the issue and I went back to farming.
STATEMENT: Blizzard will usually only ban accounts that have done something worthy of a ban, leaving any associated accounts untouched.
REASON: ALL of my accounts, both farming and main non-botted accounts all use my genuine name, contact information and credit card details. When I have an account banned; lets say for example farming 7 days in a row without going offline and listing 2000 actions per day, only that account is banned. Any other associated account or account running at the time is typically safe and not banned.