I know this conflict is external, but why?

Question

The conflict of the story is that The Wave had become just like the n***s. During a Wave Rally, a boy was harassed and called a “dirty Jew,” because he wouldn’t join The Wave. Laurie and the members of their school newspaper, The Gordon Grapevine, deicide to post an issue about how negative The Wave has become. This issue contains about a few kids getting beaten up because they wouldn’t join the The Wave and parents coming to school to complain about it. Members of the The Wave decided that what Laurie and the newspaper staff posted in that issue were lies.

Answer 1

Also, another external conflict will be the publishing on how negative The wave has become - its somewhat against the trend or lifestyle.

Another conflict is the Laurie is not exactly a "a dirty Jew" but being compared a s such because of his principle.  

Answer 2

It actually may be both, but for the external side, the beatings and  newspaper articles were physical, anything conflicting that has to deal with actions is external.