That was the claim, but it’s clearly a lie. First, they’ve defederated with and blocked hundreds of instances, not two. It looks like close to 1,000. You can review yourself here: https://beehaw.org/instances

Second, it appears they have even more moderators than the instances with which they defederated. More than enough to keep illegal content off the instance. But that’s not the intended goal. They want content off the instance which is ideologically opposed to the owner. They make that clear in the instance description. They want more moderation than Reddit, which is already filled with insular ideological spaces.

The users are all very much on board with this ideological purity. They freely admit it, so I’m not sure why you would contend it.