It is just as you said. As an example you can look at heapoverflow.ml which got domain high jacked. It is down but the content is still available on other instances:
this post was submitted on 08 Jun 2023
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That's cool! Not that the domain got hijacked, but the fact that the content is still available on other instances. This is brilliant and shows you the benefits of federation VS centralization.
I didn't know heapoverflow's domain got hijacked, do you perhaps know more ? and if they got a new domain ?
Here the admin did announce it: https://lemmy.ml/post/741881
I do not know what happens with a new domain. It is probably as if it was a brand new instance.
EDIT: maybe @Thann@lemmy.ml can tell you more
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