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Idlechan/iichan is an image board in the same vein as 4chan, both based originally on 2chan. It was created by Thock, a member of the Something Awful forums, maintained by himself and a few other individuals.
After the demise of 4chan, many regulars migrated to 5chan. Some, however, found 5chan to be insufficient for their needs (because of layout and content), and split off into a migration to Idlechan. With the return of 4chan, many believed that Idlechan/IIchan had served its purpose, but it continues to be constantly maintained and upgraded with new things which 4chan or 5chan cannot or will not implement.
In turn, Idlechan changed names to iichan, the two "I"s probably a play on the name 2chan.
Codebase: Wakaba (previously ran Futallaby) - Wakaba stands for 'New Leaves'
The 5chan conflict wasn't so much of a conflict but rather a spat between Zabadab (5chan's *former* owner) and Thock (IIchan/Idlechan's owner). The dispute started when Thock tried to poke fun at Zabadab, after 5chan got a new server. Later Thock accused Zabadab for reporting his site in violation of copyright agreements, which led to an all out flamewar between sites. Thock claimed that Zabadab later reported his PayPal account, which Zabadab admitted to on the front page of 5chan. This news post was taken down after a few hours.
What allegedly occured after was a Distributed Denial of Service attack against 5chan from an unidentified party. (Perhaps a 4chan or IIchan veteran, or just a script kiddie or cracker with too much time on their hands.) It was later rumoured that Thock had lied and had the paypal account closed due to his own blunder. True or false, the end result was 5chan closing down after Zabadab snapped under the e-pressure and had an online nervous breakdown.
Currently, 5chan is down with no sign of returning. Only Idlechan and 4chan remain, including such failed incarnations as and ), along with the Japanese sister site, Futaba Channel or 2chan.