A quick timeline of Tommy and Dream's friendship.
Dream and Tommy streamed together and they had a good time so Dream invited him to his server. Tommy streamed on the DSMP server and there's where he and the server both started to really blow up. Tommy and Tubbo were 16 and Dream was 21. (Tommy was on around 250k on youtube when he joined the server and Dream was at like 4 mil).
Dream gave Tommy a bunch of youtube advice around this time as well and they got into lots of long night calls as they were both pretty hardworking and interested in making it big on youtube.
When Tommy and Dream streamed together their streams were very popular. Their comedy seemed to mesh really well but there was some underlying friction. Tommy is hugely sarcastic and plays minecraft very ironically. He would at times like to misinterpret what people said and then remind them that he's a minor. Some of these jokes were funny. A few were more grating for me personally (Eg I never liked the 'what's the worst word you know' jokes). But yeah this was purely comedy and Tommy loves to take the mick out of his friends. Also sometimes Dream and his friends did make the odd inappropriate joke.
Eventually the server and the fanbase got really big and people got super invested into the minecraft roleplay. Tommy and Dream's exile arc where Dream played a cruel villain and Tommy his victim was particularly notable creating a huge narrative around their characters' dynamic.
Then Tommy started to get burnt out on the server. Everyone was a bit. Dream was also rarely ever online not to mention other things going on. Whatever the case, the DSMP was coming to an end.
There had been plenty of drama amongst the CCs and Dream had been through plenty. The most famous was the speedrunning cheating scandal. There was also the manatreed thing. But allegations started coming out that Dream could not ignore. He'd apparently been sexting a minor. A few other stories came out too. And fans began distancing themselves from Dream. There was pressure on the CCs too.
However, Dream had convinced the server of a new vision: Dream SMP season 2!! Reset the server and do it all over again. End all the current plots as best you can and get ready for more!!! So they made a terrible ending of them blowing up the server.
And then a lot of CCs spoke out and said they didn't want to do DSMP season 2. It didn't feel right. Maybe because of the allegations, maybe because the plot sounded bad.
So Dream pulled the plug on the idea. Tommy was probably not best pleased that season 2 tanked so soon after the dark ending.
But Dream came up with a new idea. THE USMP. It would be an international server with live translation or something. All we know is that he had gotten Tommy on board and Tommy was excited by this. Tommy wanted to do another server with Dream still.
But yeah, the allegations hadn't gone away and a new drama surfaced. Quackity had plans for his own new SMP he was passionate about and Dream was threatened as it sounded so similar to his own plan. (They happened to have come up with the ideas independently.)
This erupted into drama as Quackity left Dream on read and didn't engage with him.
And Dream's server.... didn't happen. Again the server he'd promised Tommy didn't seem any closer to being realised. Just like in the DSMP, Dream wasn't shown to being much good at organising anything. The ending of the DSMP was badly managed because communication was so bad.
So as USMP wasn't happening, Tommy had been seeing what was happening, seeing both sides and wrote a skit. If youtubers were honest which made fun of Dream's response to Quackity given everything. Tommy was likely mad at the USMP's failure to manifest and also the internet was really turning against Dream. CCs in general didn't want to associate with him. Partially the allegations, but also he is a difficult CC to work with and Tommy was likely very aware having organised big videos and vlogs himself.
Dream was shocked by this video. He felt betrayed at Tommy and thought Tommy was being two-faced. Being sweet in private but milking him for views in public. So he became antagonistic towards Tommy.
At this point, Dream sent a DM to Tommy's mother complaining about him. Yeah.
Seeing Dream's crazy responses and also facing more wake-up calls about his teenage years with hindsight and the Wilbur situation, yeah Tommy was very happy to cut ties with Dream.
He didn't make a huge deal about it but he stopped making content with him and he and his friends would sometimes joke about him negatively, sometimes on his podcast, sometimes just jabs here and there. He and his community were both anti-Dream though he'd never made any public statements about it, or what happened. The history was fairly private.
Until now, Dream saw Tommy making fun of xQc and decided to lash out at him and his fanbase and air out every issue he's had over the last few years. Tommy responded, and made it very clear he's blocked Dream and they're done.