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will it help me not get banned From PSn?

what exactly does it wipe?

when do you need to run it.

do i need to run it every time i quit MultiMAN? i heard that MM does it for you.

Wipe history clears all the recent boots, and things that if Sony finds you with, you'll get banned, but it's useless as Sony has very very powerful methods of spying on people, and would be quite a trick if you could out run their system. They don't really ban much though, and if you do get banned, then just use psid patch (like a new key vault for xbox, only for ps3 and cheaper) and it has a generate random so you can keep doing that until you find a valid one.
Welcome for the info

thanks! but i do it anyway just to be safe

but doesnt multiman already clear your history? ive heard that multiman has wipehistory built in and it clears it every time you use multiman.

No I don't think so.