the Lobster Incident

It sounds to me like what happened was you and your friends use this word, "Lobster" like it's a bad thing. And the teachers probably assume its a racist thing, because almost everything is race related nowadays, so they asked you to stop. Instead of stopping and letting the school continue in their ignorant belief, you decided to draw attention and label yourselves with imitation Nazi Registration Numbers, and calling it the, "Lobstercost" (which should be "Lobstercaust", being as that you are claiming this is like the Holocaust). Obviously, a situation such as the near genocide of an entire people is nothing to joke about, and it is disrespectful to treat it as such. Your disrespect and continued ignorance of the reason you were being asked to stop is what you are being suspended/"sent to jail" or whatever punishment for. You could have left it at, "Stop, that's not nice." or whatever was stated first. And because you labeled yourself, as well as your friends, you are all guilty by association. You all get what you deserve.

Everyone makes jokes about the Holocaust...
Hitler is practically a big joke modernly.

And we started calling it the Lobstercaust after we got in trouble. It's more like an underground thing now... >_>'