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"
If they have users calling for violence and those users are not being banned that is one thing. If they have odious opinions on trans healthcare that's completely different.
De-federation should be used for instances that promote literal violence. Blocking should be used on communities and posters who have opinions that you can't stand.