All right, I've come up with a story theory on Madness Combat.
Hank, Sanford, and Deimos were three of the Auditor's best henchmen, along with Jesus and Tricky. The headquarters of the corporation the four are a part of is the desert the series takes place in. Soon, the Auditor creates the Improbability Drive, and plans to conquer Nevada. He attempts to start with a small town, but the residents fight back, and so he destroys them with the primary ID. The sheriff of this town surrenders and joins the Auditor, and the Auditor gives him ownership of the secondary ID, which is at that time deactivated. The town was also the hometown of Hank, and he rebels out of anger. The Auditor then captures and tries to execute him, but Hank escapes, and rests at a nearby tree. The Auditor sends 27 grunts and Jesus to try and kill him, but they fail, thus making Madness 1. After seeing Hank kill Jesus, Sanford, Deimos, and others working for the Auditor join him out of fear. They then decide to kill the Sheriff, with Hank going in and Sanford and Deimos going in if Hank doesn't come out in an hour, thus making Madness 2. Jesus and Tricky are guards for the Sheriff. After killing Hank, Jesus decides that the building isn't safe for the Sheriff, and moves him to the building where the Auditor resides as well. Sanford and Deimos then take Hank back to their base and revive him. After the events of Madness 3, the Auditor decides not to revive the Sheriff, seeing him as useless, forms the 1337 Crew and A.T.P. agents, promoting the best henchmen, and renames the corporation to Agency Against Hank Wimbleton. After Madness 4, Tricky steals the Portable ID, and betrays the Auditor. The rest of the series unfolds from there.
This isn't the real story, just a theory, and I honestly doubt that it's right.