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"
Or you can not be an authoritarian fascist and let your users decide for when selves what they want to see. Defederating is a bitch move.