See longer post (not by me) there, if all is true then they should fall under both the spam and mass lemm.ee rule breaking defederation rules, both bigotry and abusive language, though not always in combination.
Also the covenant thing Mastodon has would probably be a good idea.
i mean if it was one guy saying ‘nazis’ literally is lying
which is besides the point, because saying they platformed nazis because the single-user, non-issue community that no one even noticed except for the person that made a post calling attention to it, on an instance that allows anyone to create a community, was deleted after a day is so ridiculously misrepresentative of reality that its practically a lie anyway