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Instance blocking depends on the admin. If you are not happy with the moderation of the instance you are on, you can always host your own.

> I don't want the very nasty users of that 10M to interact with me or my friends.

> This is just opening everyone to harassment we didn't ask for.

I fail to see how this is much different from existing social media, where there are also any of millions of users who could harass you or your friends.

If mods see harassment, they can block such user or use broader preventive measures, including defederation. As with any other Fediverse software.