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I don't know how widespread this theory is, but in school my teacher told that one of the reasons for the war was that Paraguay was building an economy independent from the English market, and England fearing it would be a "bad influence" on the neighbours, pushed them into attacking (or provoking) Paraguay.
(I'm from Brazil)
No clue if it's true, as I'm not very educated on the period and region, but considering the 'Great Power' politics of the time, I wouldn't be surprised.
And here I thought, it was because Paraguay's and Uruguay's dictators where homies. Than Uruguay's dictator got sacked and Paraguays dictator got mad because he would feel lonely being the only dictator in the region and went to help his homie. Argentina and Brazil supported the new Goverment of Uruguay and told Paraguay they couldn't move their army over their territory. Paraguay was like: Bet?! And got genocided by the end of the war.
To be fair most of the credit for Guarani being what it is today should go to the Jesuit Order in Paraguay. They took their time of writting down the language and building an actual grammar around it, what mosts if not all other indigenous languages lack.