In chapter 7, how is Snowball discredited?

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In chapter 7 of "Animal Farm," Snowball becomes the scapegoat for everything that goes wrong on the farm. A rumor is begun that Snowball is working with the humans on the other farms and labeled as a traitor.  If a drain is blocked, or the food is missing, or a key is lost it is said that Snowball is sneaking in at night.  Napoleon insists on an investigation and he says he sniffs Snowball everywhere. 

"Squealer tells the frightened animals that Snowball is planning to guide the humans in another attack on Animal Farm. Squealer calls Snowball a traitor to Animal Farm and a secret agent of Mr. Jones. He says that Snowball was prevented from turning the farm over to Jones during the Battle of the Cowshed by Napoleon's bravery. When Boxer questions Squealer’s account of the events, he is told, “Our Leader, Comrade Napoleon's stated categorically…that Snowball was Jones’ agent from the very beginning…and from long before the Rebellion was ever thought of.” Although Boxer ultimately changes his mind after Squealer’s account, Squealer eyes him with suspicion and regards him as a possible troublemaker."

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