You're completely right. In a generous interpretation, having so little communication over such a long period is where this went wrong. In any case, having your highly-tenured team dissolve and feeling like things were "hostile," is an indicator that you'll need to do better. Then again, who knows what the goal actually was? Maybe this went perfectly to plan. Given there was nothing approaching an acknowledgement of regret or apology in the press release, maybe this went exactly to plan.

It reads like the confrontation-avoiding Office Space solution: "We fixed the glitch [...] so it will just work itself out naturally."