How did it happened? because the sales from their battle pass, there's a share that will go to the prize pool and that's very effective because a lot of players supported it.
But unfortunately, because of the pandemic it is near impossible to see tournaments this year, there have been talks that the tournament will be home-based but before you do that there are some factors that the organizers should consider like the internet, and computer reliability.
No, you are wrong. Tournaments are made to happen online and they're still good as the lan tournaments and when we say tournaments, it doesn't mean that it should only be conducted physically or live/lan. This is one of the good things in esports because it's very flexible in such situations.