I'm currently working it out. But as it stands, I believe it'd make sense if it became apparent to the Imperials invested in it that they were getting cut out of the deal, so to speak. In order to avoid direct PvP, I'm working out a solution of how the Empire can respond. The station IS in Hutt Space, meaning a direct conflict over it is probably a no-go. Proxy, well, is the way I'm seeing it going.
What the Imperials would know is
here since it's the same database. Technically they wouldn't have the knowledge of the children being used as test subjects (though a powerbase tracking that thread might work) nor would they have the intel Varra has that it's related to Taris. But the weaponization potential is clearly known for any Imperial personnel.