Defederating can be temporary, though. They can refederate later on once modding tools have improved etc. I don't really blame them for having to iron out some kinks with all of the extra influx of users, the graphs of the new users look crazy. I think it'll smooth out over time.
What an absolutely idiotic CEO lmao he is so clueless. He doesn't realize the community and the volunteers (moderators) have all of the power. The website is nothing without that.