Had it been a smaller instance it could have been fediblocked to oblivion. Users would have lost contact to their friends and communities and many would have come to the conclusion that it's not worth it being on smaller instances and flock to massive ones or even back to corporate platforms where that problem doesn't exist.
A few days ago I faced a similar problem myself. We were blocked by an instance 200 times larger than outselves because I had the gall to suggest talking to a user about a report to get their version of events instead of killing them on sight. My instance was blocked even before the conversation was over, just like that.
And to top it all off a few days later a report that one of our users sent out (a different user, mind you) and for a completely different reason was taken as proof that I'm letting my users abuse the report system and support abusive behavior!? Everything was done and blocked before I had even logged in.
Only one admin of the three instances