Would need a workaround to prevent the guild with more squads from just not attacking eachother as it would remove the chance of other squads winning
Understandable.
But also to note that in the end the squads will still need to face each other.
Lets say this happens.
For example 5 squads from 0fk and 3 squads from alamat.
2 squads of 0fk survive at the end.
Those 2 squads will still need to fight it out to ultimately have 1 victor.
If you want you can even disband squads after 1 is left and have all 10 people fight it out to be the victor.