Also doesnt really have to provide a cake serving but wondering how the fondant liner and basically the entire thing is made?  

Also what is the cutter called that makes shaped ribbons like the bottom tier?

Thanks

The cupcake might just be rice krispie treats molded and then covered in fondant. 

You don't need a specific cutter for the stripes; you can use a pizza wheel or knife to cut ribbons but there are ribbon cutters you can buy specifically for fondant.  Last time I checked, Wilton made one but it's plastic so you have to let your fondant dry a bit to get clean cuts.