"Two boys jumped out of the car and asked Nate for his hat. Both boys said no and a fight broke out," a family friend told Daily Mail Australia.
Nate reportedly woke up on Monday night to the news his "best friend" had died.
"He cried to Karli, his mum, and said 'my best friend is gone' because the boys did everything together," Maaka's grandmother Yvonne Stirling told 7News.
Australian channel Nine News showed images of the blood-soaked footpath where the teens were attacked.
A friend of the family set up a GoFundMe appeal for the boys' parents Karli and Stirling Hakiwai.
The fund had raised more than $44,000 since it was set up yesterday.
"Pure evil presented itself when they boys were attacked while walking down their home street in Melbourne," the woman who set up the page said.
"Maaka was taken from our lives. Nate was able to fight through and is thankfully still with us, although still in hospital in a stable but critical condition.
"Stirling and Karli are experiencing unimaginable pain as they grieve this terrible tragedy."
No arrests have been made, and police haven't revealed whether they've got any suspects, but the family are holding out hope the attacker will be caught soon.