I am also facing this exact same issue. I was about to get top rated badge and suddenly when this new level system goes live i GOT FLAGGED. WOW! isn't it strange!
I contacted their support and they are saying due to location inconsistency my profile is permanently out of level system. How can Fiverr do this to us? I told them its a bug but they are refusing to make my profile unflagged again. This is too unfair and fiverr should work for digital nomads like us no matter where we go and travel. Travelling is not a crime i guess.