The instance seems to be mostly right wing trolls. I know defederating is unpopular but I don't think much is to be lost in this case and it can save the mods some headaches.
Edit: the response on exploding-heads.com to my reporting of transphobia. Courtesy of the "second in command"
I see it like this: the more these far right types are isolated in echochambers, the more extreme they will get, and long term that is harmful. if, instead, we foster polite and civil discussions, we can come to a mutual understanding, change minds, change hearts, and actually do something that benefits all, and help everyone get closer to the actual truth of the matter.
The mod in the post clearly was speaking against overt hate (slurs and the like). And I think that's the sort of thing that should be stamped out and discouraged. But a disagreement of views? If you don't wanna see someone's differing opinion, why should that mean you're gonna prevent everyone else from talking to them? Just block yeah?
The example that beehaw defederated over makes sense. There were people posting nsfw content in sfw communities, off topic, that was clearly meant to shock, harm, etc. it makes sense.
But have these exploding-head guys posted off topic? did they spam? did they shout slurs everywhere? or did they simply disagree with you? If it's a matter of disagreement, I don't see why the strong action of defederation is needed. Surely we can talk things out?