No, the Liam-Testefy feud didn't start with the Sketch vs Testefy stream. It started shortly before the split between Warcampaign and Etsy and Liam was streaming on his little known Unintelligent Design backup channel after VikkiVerse got the Stan Lee foundation to flag his channel for some guy doing a Stan Lee impersonation. At this time, Testefy, TripleR and a handful of others were calling in with a new routine they cooked up where they had Nazi SS avatars and were looking for jews to roundup, as well as Testefy saying funny words like "strudel" in a german accent. Like most early Etsy gimmicks/routines of the COVID era it was about 30 seconds of 'comedic' material stretched out for several hours and completely unbearable.
Eventually, me and Oz had to intervene and tell Liam that it was bad optics to let people larp as nazis hunting for jews on his channel. In true Liam fashion he started to argue back on this, at which point I had to bring up Nerkish. Liam then panicked, purged said channel, and issued a lifetime ban against the nazi larpers. Testefy tried every trick he had to coerce Liam back into letting him back on his show, including threats and refunds, but Liam double down and leaned into flagging, retaliation, non-fulfillment, refund denial, reports to Cider's local PD, etc. until the whole 'not being allowed on Liam's show' thing was completely forgotten about. Neither Liam or Testefy really wanted to bring up the specifics of the origins of the feud for obvious reasons, so it just kind of kept going on with its own momentum even after Testefy died.
As for Wiggle what's going on with him is obvious; he's been busy doing other shit for the past year and has decided to just get back to doing what he was doing then like some relic coming out of cryostasis, which was fighting with Liam, currying Frog's favor and gatekeeping Dean and Vikki from the slums. None of which really matters at this point.