Okay it is fixed now...
(at least on my site, I submitted it to bug tracker and in the bugs notes I posted the fix)
For all who want to fix their's here it what we did.
One of the karma SQL queries was updating instead of inserting.
fixed: ( Modified Karma.php ) Sql query was doing UPDATE instead of INSERT INTO
Line 79
This is how it should read.
$request = mysql_query ("INSERT INTO {$db_prefix}log_karma SET action='$dir', logTime='$nowtime' WHERE (ID_TARGET='$uid' && ID_EXECUTOR='$ID_MEMBER') $doLimitOne");
The problem was that it was updating the last action they did instead of making a new entry. Say I appluaded username?, it would add an entry to the log_karma table saying I appluaded him. Then I go and smite him, instead of making a new entry it just changed to last one to a smite action. Then I could go applaud again and the cycle would continue.
Thanks to my partner Indy for finding this and fixing the code.