It's also known by those who use targeted harassment because it gives them perfect plausible deniability.
Think about it from the side of the guys who stand to gain from targeted harassment. It's not really worth it for harassing people working at a low level in organisations unless they're a real problem. But think about it from the perspective of targeting people with wealth, political/social influence or those with skills.
If you can make the target look crazy it becomes easy to get what they have or make them do what you want (eventually everyone breaks)