You CAN destroy half a village by accident. Especially in the world of guided missiles and et cetera. It wasn't an accident as in destroying it by accident, but rather an accident in the location of the said settlement.
It takes a great level of stupidity... Im actually impressed, they just won the gold metal of idiotic behavior...
wow, accidentaly detroying half a viliage by accident my ass and there useing buldozers... gee, wonder how they got the right homes... it was 5! 5 miles away!!
It was EXPLICITLY stated that the people living in that village are also squatters (for the most part), and anyways, how can you tell which is a squatter settlement and which isn't? It isn't like there's a sign that says "Squatter Settlement." Seriously, an honest fucking mistake.