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"
If per-user instance filters are implemented, perhaps instances could have "default blacklists" for new users for stuff like exploding-heads or lemmygrad that most people don't want to see, with the option to manually un-block them if someone does want to see that.