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Not true, images are federated. Sometimes they are not copied if your instance has a lower image size limit than the instance the image came from (if the image is too large), but generally images are copied between instances.
I did check a few embedded images, and they still seemed to be served from the original. So I dunno. Maybe they’re copied and still served from the original, which would be an odd thing to do.
Aah the embedded ones in comments? Yes to my knowledge those aren’t federated. But pictures posted as posts will be federated.
