uhh....do you know that belt thingy is strapped to her stomach not her hip? because that's the impression i got from reading the reason. below that belt is not the hip but still the lower portion of her stomach.
Arms are completely in fine proportions if we take into consideration that her belt is slightly over her waist. This artist has rather... sloppy artstyle and thus his arts are so easy target for flags... We need here some sane moderation that will de-flag this pic.