Also, each side lies habitually, even when lying is pointless, and often without even noticing themselves that they are doing it.

It's not necessarily all intentional. I think there's a mental trap in assuming nothing is a conspiracy, and in assuming that everything is a conspiracy. There's probably mostly an organic tendency or trajectory within a group, with some targeted nudging, and everyone sort of automatically pays into it and tries to one-up each other, and it quickly gets ugly and crazy.