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My guild had a pretty big blowup recently. After trying for months and months to fill a 25-man core with the people on our backwater server, it became clear that all the talent was either unreliable, taken or unable to make our raid times. We were left with recruiting people from other servers and the opposite faction. Eventually, we picked up a couple of guys who were leaving their current guild, which had stalled in progression and was dying off. They were good, too. Very, very good. Pretty soon, they had recommended that a few of their friends transfer over to join us. Then a few more, then more. Before we knew it, almost a third of our 25-man raid was made up of this little circle of friends.
Then the drama started. As the stress of focused 25-man progression started to build up, so did the insults in Vent, the backstabbing and the painfully obvious divide splitting our guild in two. Officers were flooded every day with whispers about who said what, who should be raiding and who shouldn't, who "stole the healer" from what 10-man team ... It was ugly. Long-standing members started "taking time off," the GM stepped down and transferred away, a couple of officers quit the game entirely and the whole thing culminated into a night of finger pointing, insult throwing and /gkicks. When the dust settled, we had 10 to 15 people left in our 25-man progression guild. The guild, for all practical purposes, was dead. The only thing left for us was to transfer off and rebuild on another server.