Seems like an overreaction considering how many degrees of separation the instance has from actual pirated stuff. No pirated content is hosted on dbzer0, no direct links to pirated content either. Even if a copyright holder takes issue with the community it would seem unlikely for them to target one of hundreds of instances which federate and have it cached rather than the actual source instance itself.

That being said, I don't know where lemmy.world's servers are located, some places are pretty strict with piracy. Even if it's a small chance I can see how, from the perspective of an admin, it wouldn't be worth risking the whole instance and potential legal action.

Still seems like an extreme response to me, but hey, beauty of the fediverse and all that. I chose a small instance specifically to avoid defederations like this and I'm perfectly happy with it (thanks for hosting neo).