This article explores the cultural complexities of participatory censorship among young Chinese netizens, particularly within and beyond fan communities, through a digital ethnographic lens. By examining the interplay between social media practices and state governance, the study introduces the concepts of algorithmic folklore and interpretive labor to elucidate how fans engage in censorship as both a routine task and a form of ideological negotiation. Through immersive participant observations and in-depth interviews with 25 informants involved in fan conflicts, the findings highlight that while fans perceive their participation in reporting as a form of empowerment, this engagement paradoxically reinforces state control and self-censorship. The study argues that the dynamics of fan conflicts are intricately linked to broader political contexts, where fans become both agents and subjects of censorship. Ultimately, this research underscores the cultural complexities of participatory censorship, revealing the ways it can obscure deeper systemic inequalities and exploitation within the framework of cultural governance in China.