@Jason @aires @mud212 another important piece of the puzzle here is that seemingly (as far as anyone could tell) innocent trans women were majorly overrepresented in the unjustified, inexplicable blocks, and so trans women got rightfully pretty upset and frustrated, since we're everyone's favorite scapegoat, and isolating innocent trans women while simultaneously accusing them of serious things — the blocks were automatically default-tagged with "hate speech, bigotry, poor moderation" instead of the block being nonspecific — is very harmful. And once those accusations are out, well, that genie is never going back in the bottle.
It would've stopped there, but then Ro, the creator of the list, started accusing everyone who was upset with him — or questioned the block list's fundamental approach — as racists (which others try to justify by saying that there was a racist harassment campaign against a black queer instance called Play Vicious awhile ago and so Ro is somehow justified in assuming racist intent) and another big Black Fedi used started talking about "fashy trans" as if that was the main problem, and so people have kept being angry and pushing back because of how disingenuously the bad space's defenders have been handling everything. And for many other reasons. I actually have a big post pinned to my profile summarizing the issues with TheBadSpace, with receipts, if you're interested.