That character probably said something stupid/funny/annoying in local and one or more of your fellow capsuleers decided to give you a compliment for it.
I agree with the OP, the current Bounty system is a failed joke. The fact that anyone can have a Bounty placed on them at any time breaks game immersion. In reality Concord would never acknowledge or sanction a bounty being placed on a capsuleer with positive security status.
The problem with the original Bounty system was the fact that alt characters could collect on the full bounty amount. The current Bounty payout may have fixed that issue but now it’s near impossible to be removed.
The Bounty system itself should have been split into 2 different category’s, Sanctioned Bounty on characters with negative security status and for a higher fee, Unsanctioned Bounty on characters with positive security status.
Only characters with positive security status should have the ability to collect on Sanctioned Bounty whereas all characters would have the ability to collect on Unsanctioned Bounty.
it’s always fun if people try to make a lore argument but have no clue about the lore and think CONCORD is some kind of police similar to what we have in RL. CONCORD does not care at all about bounties or what else capsuleer do to each other. The only thing they care about is unsanctioned capsuleer vs. capsuleer aggression in some parts of empire space.
I however agree that the system @Nanako_Chosokabe worked out could in fact be refined to a working real bounty system and could replace the rather stale system we have now.
Because right now anyone can bounty anyone for any reason. There’s people that use alts to hang out in the newbie help chat and just bounty new characters coming into the game for fun.