this post was submitted on 15 Aug 2023
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You are incorrect. They get a copy of the data from all other instances, store it locally, and host it for all of the local users. If a local user comments on it, the comment is stored locally and pushed back to the original instance and all other instances. They have no control over the content and can't moderate it locally unless the community is local.
You are talling about cached content. I find this to be a silly argument. When data is transfered on the internet cached copies of that data exist in many places in between the source and the consumption. Cached copies are not a target of dmca and if they do become targets, fringe social media instances will be low on the list of priorities...
There's a difference between a cached content that is unmodified from the original copy and what happens on the fediverse. Here, each instance has a cache and it is modified and pushed back out to all other instances. The original post is cached, but not any comments made through .world. That's the key point.