@lrhodes @gvelez17 @shiri @snarfed.org Yeah.
Each PDS publishes its local users' block lists (and changes to that should be part of its outbound AT firehose), so the bridge can send blocks to Bsky. (edit: A PDS should also honour blocks when someone views a profile, which afaict bypasses some streaming aspects.) On the fedi side, it should notice them at least through authorised fetch, but there's probably some activity pushed for changes there too.
The main "issue" is that it's a push vs. pull and collation boundary, so the bridge must bookkeep this info locally and can't just translate volatile network requests on demand.
Edit: Well, that's single users blocks at least. Bsky's moderation lists can since recently also be subscribed to as blocklists. I assume that works similarly, but translating them across to AP would mean flattening them in an n*m operation.