So it seems Instagram removes a post from the view of those that reported it, but it's still up for everyone else. Logged in with my account which reported two posts for hateful speech on the left, not logged in on the web on the right
Notice the two missing posts from the left side?
Many others have confirmed the behavior. So next time Instagram tells you a post that violates their policies/guidelines has been removed, they're probably lying.
Yet at the same time they will force Queer people and artists to remove content that is nowhere near as bad as this. Often removing accounts completely.