That can be accomplished with a single list by good list management. Anything on the baddomains list should not be in the gooddomains list and vice versa. That said, what you have should work, but not as efficiently as a single list. A domain on both lists will not appear in the results, which is the intent. For debugging purposes, run each subsearch on its own with | format appended to verify it returns the expected results. You may need to leave the format command in the final query, combined.
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