Nobody can read it, check the source of your comment.
Correction: No one browsing through your specific server can read it. The rest of us see it just fine.
From where I'm sitting, it seems like the filter is applied (a) when a lemmy.ml user makes a post (it strips it from the source and says removed for everyone) and (b) when lemmy.ml federates another instance's comment over (source instance and any other non-censored federated instance has the word intact, ONLY you guys don't see it).