see linked post. I believe this would count as one of the examples given in the federation policy https://lemm.ee/post/401063 :
An instance which is knowingly spreading CSAM into the federated network
I’d argue it’s regained its original meaning recently. 15-20 years ago we used to call people Grammar Nazis for correcting our spelling online. Now the people getting called Nazis have actual literal Third Reich style fascist beliefs. It’s more accurate now than in decades.