You guy's have got it wrong re: YVDC. That's Snigg's recruitment corp, and doesn't (read: almost never) even fly with PL. Most of Sniggwaffe can be found yarring around lowsec while PL is playing :Titans: in 0.0. You can be in Sniggwaffe for a loooong time before being let in to Sniggerdly.
As far as I know, they don't share comms, intel, or even FCs. Only the CEO/directors have alts in Sniggerdly, to my knowledge.
YVDC isn't trusted by PL (because of the sheer amount of spies/awoxers who are let in), and – while I'm not a Snigg member – I bet both sides were itching to be pitted against each-other in the Tourny, for the sole purpose of proving themselves against the other in a no-holds-barred beatdown.
Regarding Hydra/0utbreak...I think banning both of them was a little harsh, given that a senior GM had cleared their practices without consulting the Alliance Team. Also, since they're the Defending Champion and Runner Up, respectively. But yeah, they weren't exactly doing it by the book, and really ought to have known better. But all the same, one of them ought to be allowed in.