As true as it may be, there are better ways of describing that, Cipher.
I've heard, yeah, Wes and Strangelove (aka Jess) got into an OOC discussion or argument and next thing anyone knows is that the Yamatians got some obscure intelligence that claims the Free State was making deals with the Mishhu (the arch-enemies of the Yamatians and Nekos). What actually happened was, since the Free State is not one cohesive "government" but a...well, a sort of collective, without the loss of free will...a member of the Hacker Cult was the one who contacted the Mishhu of his own volition. The ensuing conversation ended with the Mishhu recommending the Hacker steal some info from the Yamatians, which was interpreted by the evesdropping Yamatians to mean the Freespacers were going to attack Yamatai. Yes, a major leap of illogical proportions, but the Yamatians are not known for their "let's wait and see" policy.
Jess was so appalled at the scale of the Yamatians' preemtive strike on the Free State that she left the RP for good it seems.
Casualties:
Two planets nearly wiped clean of Freespacer presence, numerous motherships destroyed along with their genebanks, which cripples the Freespacer ability to procreate very, very much by draining their metaphorical gene pool. One other planet nearly destroyed altogether (the Freehold Factory), since it is the main production facility for the Free State. Many Freespacers were captured and were said to be used in trying to hack the Polysentience. No further information has been given on those since Jess left; though Wes was trying to rationalize that the captured 'Spacers were "enjoying their new life on Yamatai".
[/strained attempt at mostly objective situation description...]