Me and CC met each other on a martial arts class. Everyone there has VERY strict "morals" (I mean society-forced kind of morals, sorry if I can't find te right word again, English is not my first language, sometimes I lack vocabulary) and the both of us are really old and respected students (there's a hierarchy sort of thing), and were nominated to become teachers.
Most of our problem is coming from there, and I really can't unlink myself from this people.
I'm not really clear on how this class system works where you are. I'm not a martial arts person so I'm not familiar with this world. I can't give any suggestions without understanding the problem in that area.
You say "can't" but I think you mean you are "not willing" to give up going to your martial art class at this place. It is not your current job. It is currently your hobby/interest/martial arts education place, right? If not willing to change to a different location because you would lose seniority, then you have to consider what it means to stay.
If you are "old and respected students" where does the teasing/bullying/bad talking come in? That does not compute.
Who is the source of the ugh? From one person? Several people? A teacher? A student? Saying things to you directly in your face? To CC? COuld it be anxiety blowing it out of proportion? What's this business about Peaches being abusive and CC being opportunist coming from? How did that come about?