Lemmy doesn’t encrypt private messages. While there isn’t an option inside of Lemmy for admins to view your private messages, someone with access to the database (e.g. me) could technically run a database query to view them, hence that warning.

This is true for almost every other service you use, such as e-mail for example. Private messages are just text saved in someone’s server database. I have no desire to view anyone’s private messages, but you should keep in mind that I can.

I believe it means the admin can read your DMs.

Correct. Yes admins can see your messages. Why it’s set up that way ? I don’t know.

When I think of the fediverse. I assume everything I post, or write, gets blasted everywhere. Because it does.

That’s what some of these pro fediverse people won’t tell you. They’ll talk shit about centralized social media all day.

But they won’t tell you, that some centralized services HAVE to care about your privacy, while the fediverse does not.

Make a matrix chat and add lemmy project and lemmy instance chat rooms so you can see what they talk about.