The Bad Space wanted to build a project that, if it ever got widespread buy-in, would exclude "bad" servers from the rest of Mastodon, basically destroying them. They didn't get buy-in because they quickly demonstrated that they were untrustworthy, and the project is now a dead letter.
But of course it was in bad faith. I've seen other decisions made by the people involved. They didn't genuinely believe anything: they just knew that making that claim was a good move.