The tournament in question was for Twitch Rivals and the game was Fall Guys. It appears that the tournament was run during GlitchCon and was based on points received for placement in a variety of Fall Guys matches.
When xQc had enough points to be comfortable, he began to stream snipe other players in order to figure out which character skin they were. Once he figured that out, he would sabotage them by grabbing or getting them knocked off the map.
xQc gets caught stream sniping on Twitch
Other streamers like Tyler1 and Shroud were watching multiple perspectives during the Fall Guys tournament, including xQc's. They became suspicious when xQc pulled up Dr Lupo's stream and began to grab him non stop until he was knocked out of the game. There was clear confusion over the legitimacy of the stream sniping until xQc continued on to the next player.
There was no mixing it up, xQc blatantly brought up the other streams on his broadcast and clearly sabotaged. Unaware of his actions, he even went back and laughed at clips while shouting back at Tyler1 after being called out for cheating.
Well, xQc's actions came back to bite him, as Twitch issued him both a temporary ban, and a 6 month suspension from Twitch Rivals.
For the next six months, xQc will be unable to participate in any Twitch Rivals games, as he also had to forfeit any prize money earned during the Fall Guys tournament.
What's worse though, is that his temporary ban that was issued along with a Twitch Rivals punishment. It was unclear in the statement how long the channel ban was, but this will be xQc's fourth ban on Twitch. For other streamers, that could lead to a permanent ban, but it appears that xQc will only get a suspension.
xQc quickly issued an apology statement on Twitter regarding his actions. After the official suspensions were announced, he tweeted out a second apology, and he revealed that his suspension from Twitch would be for 7 days.
It's hard to tell if xQc really understands why he was banned. However, he has now apologized, and hopefully the community can forgive.