The original story around machinima dropping Phil was all about money. According to Phil, he was seeing a massive dip in ad revenue and couldn't see why, so asked machinima to investigate. They couldn't give him an answer quickly enough for him (and likely because all he wanted was money to shut up about it) so he kept pushing machinima.What's the evidence for this? He would have been "using" Machinima's account because they were the ones who actually paid him during the 7 years he was with them.
Machinima dumped dozens of people on their network. The racist shit didn't help, but just like Twitch, they didn't suddenly realize Phil had racist shit on his channel and can him. They were losing money hand over first and needed to dump liabilities like Phil.
Eventually Phil claimed that he was trying to reach someone higher at machinima, but was told to only use the log system they used. He told them to escalate it to management or he wanted out.