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 we're losing our minds over ~20 active users, then we have way bigger problems than that instance.
EDIT: Just to be clear, I have no issues defederating with an instance like that. I just don't think it matters much either way.