I totally get that and definitely don't blame Ada for defederating (although I don't think it's likely it was actually CSAM, nor that the community it was on is Inherently Problematic, as long as everyone in the posts is 18+, people's kinks are none of my business).
The thing I don't get is why reports made by blahaj users on lemmynsfw communities would go to the blahaj moderators at all. That seems like a design flaw in Lemmy, instance mods have no power to moderate content on off-instance communities, so why would they be notified of reports? That seems like it would clutter mod-logs for no reason and cause unnecessary drama (as happened here). Like if every subreddit post report immediately went to the Site Admins, that would be Terrible.
Though if Lemmy really is built like this for whatever reason, I would probably have done the same thing. I wouldn't want to have to be Subjected to everything that could be reported on an NSFW instance, there's probably some Heinous Shit that gets posted at least Occasionally, and I wouldn't want to see all of it either. I just think it's Really Stupid that lemmy is built this way, we need better moderation tools
Multi-level marketing is a kind of pyramid scheme, they're only legal because existing anti-pyramid scheme laws only prohibit "businesses" that don't actually sell any products, and make all of their money through recruitment.
MLMs get around this by recruiting people to "sell" products, but recruits must pay for them in advance (almost always at a massive markup) and the products are typically so overpriced and/or poorly made that many of them go unsold.
So, almost all of the profit of those at the top of the pyramid comes from their downstream recruits recruiting more people to "sell" the product, even though product sales are completely unrelated to the success of the scheme as a whole.