this post was submitted on 05 Jan 2024
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Moderation does federate out, but only from the originating instance, the one that owns the post on question.
If someone post spam on lemmy.ca and lemmy.world deletes it, it only deletes on lemmy.world. If a mod or admin on lemmy.ca deletes it however, it federates and everyone deletes it as a result (unless modified to ignore deletions, but by default Lemmy will accept it).
There's some interoperability problems with some software, notably Kbin where their deletions don't federate to Lemmy correctly, so those do need to be moderated by every instance. But between Lemmy instances it does federate.