We report on the observation of many-body spin dynamics of interacting, one-dimensional (1D) ultracold bosonic gases with two spin states. By controlling the nonlinear atomic interactions close to a Feshbach resonance we are able to induce a phase diffusive many-body spin dynamics of the relative phase between the two components. We monitor this dynamical evolution by Ramsey interferometry, supplemented by a novel, many-body echo technique, which unveils the role of quantum fluctuations in 1D. We find that the time evolution of the system is well described by a Luttinger liquid initially prepared in a multimode squeezed state. Our approach allows us to probe the nonequilibrium evolution of one-dimensional many-body quantum systems.