The vast majority of the instances in that screenshot have known jumps from 1~50 users to tens of thousands in less than a day. These instances also happen to not require a captcha on sign up.
It may very well be that instance owners are innocent as some have really been victims of bot attacks and simply forgot that you could enable captchas for sign-ups, nevertheless I think instance directories like Lemmyverse.net should start disincentivizing anyone from inflating his own instance with tens of thousands of bots in order to get on top of those "leaderboards".
The larger instances get featured on websites like lemmyverse.net and get more visibility. The owners of those instances can then get free traffic which they can redirect wherever they want.