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”
No one is forcing anything. You’re allowed to block them, so do just that. If anything, defederating is the more “forcing” course of action.