Not sure the confision, basically they got their IDB compensation, which must be paid out. Happens sometimes when an airline can't get enough volunteers.
I'm not sure about cowering though. The agent most likely knew what was due, and paid it out. I think theres some exaggeration going on here. Add in a bit of people not knowing what their rights are. Bam, you got a story making it like you beat the agent into submission.