It is a cute play on words. She is a very charming person, and projects such sincerity, making her very convincing. The fact that what she is selling is complete hogwash is lost in the smokescreen.
Let's take her at her words though. Supposedly, the idea is that some billionaire buys #Bluesky and some users decide to "fork off" and somehow use the open source code (which may or may not be up to date) to make a competing social network platform. This is her definition of 'distributed'.