No its only for the instance. Lemmy.ee is still federated with lemmygrad.

This dudes account is 2 weeks old.

The mod log is public and federated, so you can go look up what they were seeing… Also, no one says anything like that on lemmygrad, but OK.

Because different instances have different rules. And communities have their own rules. wait till you learn that you only see coversations from the people your instance federates with. You could be seeing half the comments of a thread if the federation overlap between your instance and the host instance are not exactly the same.