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Today we’re announcing the Disavow Links feature in Bing Webmaster Tools. Use the Disavow Links tool to submit page, directory, or domain URLs that may contain links to your site that seem "unnatural" or appear to be from spam or low quality sites. This new feature can be easily found in the Configure Your Site section of the navigation.
Using the Disavow Links tool, you can easily and quickly alert Bing about links you don’t trust. Using the drop-down, you can choose to input signals to us at the page level, a directory level or at a domain level. We’ll note the “type” of location (page, directory or domain) and the date you told us of the action. [bing.com...]
Would be interesting if what it does is to penalize all sites referred from the sites submitted to that tool.
Owner of site A secretly sets up site E and gets some links to it from site D. Owner of site E then disavows those links from site D in the hope that all of the site D outgoing links are discounted thereby harming site B and C in the process.
You are now responsible for policing incoming links and theoretically on the hook penalty wise if you don't identify questionable links.