Identifying Irony in Satire

Read the following excerpt from a satirical story:

"In the glorious land of Perfectopia, citizens never had to worry about anything. The weather was always pleasant, the decisions of the government were flawless, and everyone enjoyed complete happiness—at least, that's what the perfectly polished news reports said. Every week, people attended the Happiness Festivals, celebrating their flawless lives and the absence of problems. However, no one seemed to notice that those who questioned this perfection mysteriously disappeared from public view, often being labeled as 'Unhappiness Spreaders.'"

What type of irony is primarily demonstrated in this passage?