Well I guess I'm the one coming off as a villain.

You don't "own" a name if you don't get it first. It sucks but it's true.

Someone isn't impersonating you by virtue of taking the name you want.

The games support staff does not extend beyond the confines of Square Enix "territory". They can't police what someone might have said on Discord.

We only have your word for happened, a picture of a chat is meaningless.