oh, those wacky Montana kids
Not knowing anything further, my first instinct is that these these kids were brandishing some irreverent humor,  as opposed to hateful, trying to have some fun at the expense of the administration’s “game”. It would be the first thought I would have had if I learned that my school was putting on a “color war”, though in my case I’d be limiting it to banter to a few peers with a sarcastic “Yeah. This sounds brilliant”, at most lobbing an awkward question to a teacher or two.
Pursue the issue from whatever angle you want, but appreciate some possible limitations. The problem for the kids is that, assuming the best, you’ll end up with a whole pile of support from white supremacists — making this stunt not worth it.