I barely use the site, but just searching bluesky on bluesky shows what's up.
The ayy lmao CEO "Jay" turned out to be the type of personality who would be a CEO. They're apparently going after moderators for censoring transphobes and she's mad at people who don't like Nazis joining? I think? The CEO got ratio'd over it and is currently having an Elon Musk type of crashout about this.
I mean it's twitter tier gossip so take this with a mountain of salt. I don't know if the (blue)sky is falling.