Fedi is getting a little harder to spread hate and lies these days and that's a good thing.
It still COULD happen, but not through shared blocklists that most of Fedi use. There's other, better systems that others use now to help each other block certain bad instances that can be easily verified like Fediseer.
Nobody should feel as though they are getting "Fedi Cancelled" because of stuff that isn't even true. We, as admins, have a duty to uphold the integrity of Fedi and removing the ability to ruin someone's Fedi presence through the Tier 1-3 blocklists is a good start.