I pretty much know it exactly, at least the PinMAME side.. 
Back in the days when PinSound was still pretty unknown and small, i saw that they featured their own VPinMAME.dll on their site that in addition featured PinSound support via their interface.
So i simply asked (in fear that this will bitrot away like other projects before, that i then had to hunt for the source code in a postprocess in the past) if they would be willing to share the source, in order to release it within the official repository, which would also benefit them, as they would always be up to date with the .dll.
They fortunately agreed, i cleaned it up a bit, they provided some additions, and it all worked out (thanks again for that!!).
Then it got a bit calm in general, and i feared that at some point the whole PinSound project could be abandonded. As it relied on the external connection to their propietary software, i thought that i would simply give it a go with a simplistic implementation that interprets their folders, etc., in order to keep the existing PinSound packages alive for the future. Also the fact that other platforms (starting with Linux incl. Arm based CPUs, later-on macOS, Android, iOS) were getting more and more important for us to support (which still misses some work to this day though!).
At some point they decided to 'encrypt'/obfuscate the folders, etc, which made my implementation kinda void with the new packages (which was a mixed bag for me, after all quite some packages were made by the community for their company for free if you think about it, but it seems like this was still all okay with their EULA, and they are a company that need to make a living after all).
Then we received a patch that added the newer .csv based packages, which then kinda like became the new standard for all the packages that were released on VPU, etc.
So i don't think there was ever any hostility or something between the 2 projects. More like different interests (both understandable IMHO).