The admins have taken a stance where this should be a safe space and those being insulted/harassed/discriminated against are welcome to respond in kind. The most important part is to report it so the mods/admins can review and take action as needed.
While it may not be nice to tell nazi punks to fuck off, it will ultimately make for a nicer community if they do - we don't mind community members saying "hey, this isn't cool" in whatever manner they feel necessary.
I highly recommend reviewing this post from Gaywallet: https://beehaw.org/post/107014. Specifically, the Spirit of Beehaw and What is (and isn't) Beehaw. These sections go into what I paraphrased above at length, if you want the admin's full thoughts.