The question was asked: "How do you stay loyal while being the friend in the middle of friends argument?"
That is a really good question because it happens all the time. You have two friends who aren't getting a long at the moment what do you do because you are caught in the middle and really don't want to be and are pretty much forced to pick a side. There are a few things you can do:
1-Pick a side and possibly upset one friend
2-Be Switzerland and stay completely out of it
3- Tell both friends how you feel and go from there.
I have done all three before but the only one that seems to ever work out is number 3. I think it's because both respect what you have to say and the fact that you are taking a chance of upsetting both friends is seen as well. However when you decide to let them both have it you must be prepared for the fall out and for them to then turn on you. But as friends (true friends) they should understand your concern and realize that you are trying to help. If you lose a friend in the process then unfortunately that wasn't a real friend to begin with. Because true friends are like family, you fight with them but then you make up and move on.