Combine olive oil, shallot, and pepper flakes in small bowl; set aside. Heat oil in 12-inch nonstick skillet over medium heat until just smoking. Add beans, 1/4 teaspoon salt, and 1/8 teaspoon pepper; cook, stirring occasionally, until spotty brown, 4 to 6 minutes. Add water, cover, and cook until beans are bright green and still crisp, about 2 minutes. Remove cover, increase heat to high, and cook until water evaporates, 30 to 60 seconds. Add oil-shallot mixture and red peppers and continue to cook, stirring frequently, until beans are crisp-tender, lightly browned, and beginning to wrinkle, 1 to 3 minutes longer. Transfer beans to serving bowl, toss with vinegar and basil; adjust seasoning with salt and pepper. Serve immediately.

Serves 4