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 you all think blocking a fascist server is going "too far" and you want to keep federating, then congratulations on becoming The Nazi Bar.
The "paradox" of tolerance is not some contradictory slippery slope. It is a fact of communities and must always be upheld. I hope our admin makes the correct choice.
People rarely know what the paradox of tolerance really is and just use it as a cudgel to shut down any argument they disagree with.
The creator of the idea himself said
"I do not imply, for instance, that we should always suppress the utterance of intolerant philosophies; as long as we can counter them by rational argument and keep them in check by public opinion, suppression would certainly be most unwise.
But we should claim the right to suppress them if necessary even by force; for it may easily turn out that they are not prepared to meet us on the level of rational argument, but begin by denouncing all argument"
That's the thing though, most (all?) alt-right arguments aren't based on facts and opening the door for them to even try and defend their point of view also opens the door to the radicalisation of people who are potentially swayed by non-rational arguments.
Give them as little visibility as possible so people who might be convinced by them get as little exposition as possible and society will just be better for it.
Most arguments are based on belief rather than facts. We rarely do the research and testing ourselves and instead just trust whomever we already agree with and is considered an expert.
Problem is that's on all sides of the political spectrum. Everyone thinks their experts are right and everyone else is crazy or deluded.
The way to resolve this and find out what's actually true isn't by shutting down what one disagrees with, but by engaging in debates and discussion with each other, and pointing out the holes in each other's reasoning and tests.