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, don't de-federate. If you don't like it, block it, easy as that.
Lemmy is meant to be better than reddit, which means dealing with opposing views. If they're triggering or offensive to you, block them.