I thought the Jugs started in screenshots when a whole mess of people started using different variations on the Kool-Aid jug mascot as their avatars. People who identified themselves in this manner adhered to a loose code that exemplified "Jug Life". Which broken down basically means, acting tough, foolish, aggressive, and stupid for laughs and not taking anything too seriously. As such they shed all criticism with the ability to constantly state that they weren't being serious and everyone else should just calm down. Much of this behavior could be considered trolling, but the Jugs also seem to somewhat engage in the community and are not exclusively out to fuck with people. It's like Troll-lite essentially.
Maybe they are just the local #885 representing the Juggalo anti-labor union, but I had never made that association before. Would explain a lot though.