Can someone explain what's going on here?

Yep. When everyone is a domestic terrorist, then nobody is. Same with KKK and racists. Live by hyperbole, die from it.

I can, you are  asking about something from 2022. 

It was sarcastic.

After January 6, Dems ran with a narrative of an "attempted coup" and took a sharp authoritarian turn overnight, sending SWAT teams to raid the houses of anyone who was in the building on that day.  DC was basically under martial law on the day of Biden's inauguration and he later gave a speech under the ominous glow of a red light warning that Trump supporters were dangerous enemies of the people.

They've backpedaled since then, as nobody really cares about J6 anymore and keeping up the act doesn't score them points like it used to. The party and its mass propaganda apparatuses have since moved on to the "Trump legal troubles" talking point.

But at the height of the post-J6 media shitshow, for a Republican to say "Yes we are all domestic terrorists" was a clear show of defiance to the regime. It was to say "I literally do not care what you accuse me of."

CPAC is run by MATT SCHLAPP. He’s married to Mercedes SCHLAPP.

Matt tried to have sex with a male campaign worker by groping him.

 the accuser was eventually paid a settlement of $480,000 by the ACU's insurance company and was restrained from commenting.[27][28][29]