A banner being controlled by a squad.
Squads
From the Hypixel Pit Wiki

Squads is a major event in the Hypixel Pit. Like all major events, when it occurs, 3 minutes advance warning is given. Squads lasts for 5 minutes.

Before Squads starts, players have the option of joining a squad using the command /squad [username]. Up to three players can squad together. If a player's squad has two or fewer people when the event starts, they will be paired with the player(s) closest to them. Squads are assigned a random letter and color.

When Squads starts, several dozen banners are spread throughout the map in pre-determined locations. Players, upon standing near any banner for five seconds, will capture it. Upon its capture, the banner will be dyed the squad's color and start earning points towards that squad. More points are earned when the banner is held by a squad for long periods of time; starting at 1 point per second, this bonus increases to 4 points per second per banner when it is held for 30 seconds or more. Additionally, killing enemy players earns a squad 25 points. At the end of the 5 minutes, renown and gold is distributed based on how many points the squad earned.

The following rewards can be also obtained during Squads:

A personal bonus of 1,333 XP and 1,000g can also be earned if the player killed at least 8 players and captured at least 5 banners during the event.

Trivia

Twenty-nine people were credited for the creation of Squads, the most of any event.