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”
No, you can’t. If an instance has one blocked, you can see it if you deliberately look for it by typing its URL or looking in Blocked Instances. But it won’t appear naturally in your feed, nor will you be able to see its users or interact with it.
That means it stops you from interacting with those blocked instances, even if you liked the content from said instances. See the problem now?