I'll break it down for you.
Dystopia is what happens when Utopia goes bad. (Read your definition)
Ustwo (implies) that you believe your Socialist society will be a utopia, whereas he (implies) it will be a dystopia.
His usage is correct. Dystopia is an noun, so it does not need to include "any mention of socialism." Adjectives are used for that purpose, like his use of "a socialist dystopia."
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"I'm typing on a computer of science, which is being sent by science wires to a little science server where you can access it. I'm not typing on a computer of philosophy or religion or whatever other thing you think can be used to understand the universe because they're a poor substitute in the role of understanding the universe which exists independent from ourselves." - Willravel
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