As someone who is not very familiar with this whole saga, it sounds like both sides lost their marbles? Which is the lesser of two evils?

you could just read the legal document, as others in this thread have, rather than rely on an "unreliable narrator"...

Surely no sane person is on WPE's side. They're just vehemently against Matt, who has proven to be a complete psychopath

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He didn't win. He won in the way Apple won over Epic. (Apple lost.) People seem not to understand that in a lawsuit like this the lawyers throw everything at the wall and see what sticks. WPEngine surely didn't expect all of this to fly... but some of it did.

he hasnt come even slightly close to winning his case

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Outside of cryptocurrency yeah