Them being "bullies", whatever is meant by "bullying" in this context, doesn't deprive them of their right to own their instances or align with administrators with similar moderation policies. Fediverse is literally built on the idea that people own their instances and therefore all own the choices they make that affect these instances, just as you own the choice to call their flocking behavior "bullying".

Or, in other words, what are you expecting? It's their hardware and their software. If one pays for hosting, and owns the software, then - unlike you or me - they're entitled to do as they wish with their stuff and to bear the consequences of any moral judgments they make. Which is the same as Twitter, same as Threads, same as Bluesky, just on a smaller and more interconnected scale.