this post was submitted on 15 Jun 2023
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The short version is that beehaw was struggling with the (currently) limited toolset available to moderate user content, and they saw a heap of users posting things they don't allow on their instance were coming from the two other big instances, so it was more effective for them to defederate to try and stem the tide.
I imagine regeneration will occur in future when the lemmyverse stabilises a little, and when better mod tools are available