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 often hear the argument "they'll just go elsewhere," "they'll just start new accounts," etc, to defend not censoring/defederating/blocking/whatever fascist or proto-fascist people or sites. That's not an argument, that's a commitment to rolling over for fascists and intolerance. They're bringing the fight, and not fighting back and making their lives harder is just helping them move the Overton Window further to the right, and making horrific ideas palatable.