this post was submitted on 23 Jun 2023
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No, why would it? The instance could simply enforce its moderation guidelines and block the community.
It would ruin the Fediverse because, if this post is any indication, it takes nothing but a user shouting 'Nazi!' to get people ready to accept de-federation. Most users who are commenting appear to not have looked into the issue or viewed the community before giving their opinion. They're more than willing to buy the 'Nazi bad, de-federate' argument with zero evidence.
If you look into the community that the OP is referring to... it is made up of a single user's posts and less than 30 comments across the entire community (most by the same user). None of the posts or comments in that community/by that user violates any rules on sh.itjust.works or kbin.
There is no there there, as they say. This is a 'The Boy Who Cried Wolf' tale. There's no wolf, there's no Nazi bar. One user created, one community and now we have a 200+ comment thread discussing de-federation. I cannot find any other word to describe the situation other than: kneejerk.