It's fairly clear from the 3news.co.nz video what happened and I'm glad the media probably got it right this time.
The AS350 has a relatively short MR disc overhang ahead of the cockpit due to the positioning of the MR shaft a bit further back (great for forward view in utility work) but the same cannot be said for lateral clearance due to the unavoidable radius of the disc swept by the MR blades. Lateral clearance thus could be deceptive and a wider berth is certainly the more prudent course.
It's a huge relief that, although everyone was visibly shaken, none was hurt. I bet the lucky pilot is going to feel a few aches and pains waking up the next morning though, after the initial rush of adrenalin has passed through.