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'd more call their answer unhinged. Given that the guy is one of the instance administrators I think we should cut ties as it points to their administration being at the very least complicit in the far right posts on the instance.
Full of sophism (their answer) ? We should let them take the first step. Being hateful outside of their instances should be the trigger.
If we defederate easy, users don't join an fediverse but just an extra community. At this point I would prefer punbb or phpbb as old times ^^ We really lost the interest of fediverse I think in this way.
I'm not at all at their ideology just to precise. Hate them. If I should choose one side I would be more on lemmygrad XD
My POV tldr :
Users or sub community do shit -> ban/block.
Admins of an instance starting an war openly or OK with some actions comparable of -> defederation.