The key word here is “large”. From the article:

“[Fediverse] instances don’t generally have any unwanted guests because there’s zero incentive to grow beyond an ability to self-moderate. If an instance were to become known for hosting Nazis —either via malice or an incompetent owner— other more responsible instances would simply de-federate (cut themselves off) from the Nazi instance until they got their shit together. Problem solved, no ‘trust and safety’ required”

we have more mods per capita that the corpo hellsites and we don’t even have venture capital money funding us