It's not that there is a problem there, it's that they are bringing their hate into other instances. Several instances have already defederated with them, and I expect more will follow. Basically the fediverse version of "fuck around and find out". They are finding out that when you are an bad neighbor, the people of the neighborhood are going to shun you.
And it's not like we couldn't re-federate if the admin did come and "straighten things out", but until then, it's a bad neighbor and we put up fence to keep their shit on their side.