A new Galbadian leader is chosen and GASP. He looks just like Squall.

The world of FFVIII now not only has Cable but Internet as well. President Not!Squall broadcasts his intentions of trying to form an alliance with the other power of the planet, Esthar.

President Laguna is understandably weirded out by his not!son. Also during the meeting Laguna is assassinated. Also Galbadia's military has somehow surpassed Esthar and launched an invasion. President Evil!Squall intends to conquer the world.

Then the game starts.

End Spoiler - Raine had Twins. She came down with a slight case of the deadness and Ellone was gone so nobody knew. As for why Llauqs is doing all this, it's because he's possessed by the spirit of the Great Hyne who wants to reclaim all his power.