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"
Defederation should be the LAST and FINAL option. From what I understand, this is a small instance that isn't causing much trouble outside of their instance. Block them on your own! I'm on lemmy.world, but personally I would like to keep up to date on the shit they post. I don't think we should start going around defederating communities that we disagree with, even though their opinions are shit, vile, offensive, and disgusting. Leave it up and block them on your own.
Edit: 10 years ago I used to be one of those intolerable fucks. Yes - exactly like them. Until I talked to other people on Reddit, real life, and listened to other ideas. I had a change of heart and hope even a couple of them could too. It happens.
I think given their hateful content it is irresponsible to essentially platform their content by remaining federated. Do you really feel the need to stay up to date on the latest transphobic meme and covid conspiracy theories?
They know they're acting like dicks, they're openly proud and revel in it and it's a core, fundamental part of who they are. Hateful bigots such as them don't have any interest in changing who they are or improving their behaviour, they will just shift the goalposts and double down every time they are challenged. It's been proven time and time again that they are not looking to be reasonable.