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"
The difference is this: I like it here, you don't. So why would I move elsewhere?
I suggest it because you clearly want a hands off approach to moderation which that instance offers.
At that point though again, why don't you just go to a more heavily moderated instance (which there are plenty of) rather than demand heavier moderation on this instance? Also, wanting a more relaxed standpoint on defederation, I can't see him wanting to move to a server that's likely to be heavily defederated by other instances itself.
Sounds like you should move to beehaw