I can contribute a few things, I've known Pinkpanzer for about 7-8 years now and know about some of the TNO stuff. I talk about him because he's basically the center of the whole community and more or less fostered the cancer therein.
Originally TNO began as a forum roleplaying game on the now defunct Facepunch forums, and I helped run this first iteration of the game in 2014. Panzer joined around that time and was so thrilled about a game where Hitler wins ww2 that he started developing a mod for it on Victoria 2 before switching to Hearts of Iron. He fancied himself a writer and a game developer (although he is neither), and wanted to develop something that would offer a deeper experience than the typical HOI game (which is mostly breaking the game to conquer the USSR as Latvia). This entailed having to make lots of new mechanics covering legislation, economics, social reforms, etc which were far beyond his capabilities to see to completion.
After switching development to HOI4 in 2016 the mod began picking up interest in the modding community and this is where the drama in earnest begins. From day 1 Panzer maintained that he wanted to control and direct the mod in its entirety, which meant that his word stood on every decision, and of course meant banning people he didn't like. By 2018 the mod had gotten huge with hundreds of contributors and inevitably cliques formed. The entire mod being full of meme ideologies and nations originates here as inevitably people discovered that they could make a russian statelet for some pet ideology (which eventually took over the mod). Another problem reared itself when the fame and attention went to Panzers head and he encouraged a cult of personality to develop around him, culminating with interviews in which you can audibly hear his cock getting sucked. He also became notorious for banning people that disagreed with him, although the jannies always had the problem of the mod attracting the wrong sorts of people (nazis, commies, other lunatics). Constant leaks of content and the mod itself happened to also cause drama.
Eventually things boiled over when Panzer discovered that about half the dev team had made a secret discord where they worked without his direction. A so called "Shadow council". Panzer responded in the most rational way one can do under these circumstances, in which he banned everyone concerned, kicked them off the dev team, and purged most of them. He also realized that the overly ambitious target set for the mod was unfeasible (not to mention that he got lazier) and he scaled things back until we were left with the current iteration of the mod, which almost exclusively deals with Russia, the Axis powers, and the USA. The mod was released officially a few months ago, in a greatly unfinished state. Panzer recently abandoned work on the mod entirely to begin work on Godherja (A crusader kings mod he will likely also abandon). As for Panzer himself, he's been running a failed twitch streaming career:
Despite his cult of personality it has failed to translate into actual material success, since he ended up homeless for a time. Perhaps making 5 hour streams where you watch Vaush give his stupid views on politics isn't very interesting to people.
Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.
www.youtube.com
Speaking of Vaush, he reportedly helped advise Panzer on some political aspects of the mod. As to why Panzer insisted on giving Reinhard Heydrich (the literal architect of the Holocaust) a redemption path, perhaps Vaush wasn't as influential as hoped. It's unusual, but a lot of nazis in this mod seem to be portrayed sympathetically...