This story was covered pretty well by the local press. You can research
www.adn.com for more info.
My understanding is that the airliner was inbound to PANC and there was some confusion over the squawk code.
Having personally listened to some real confusing exchanges over requested flight levels or frequency changes this wouldn't surprise me very much.
Shooting it down would've been tragic. Meanwhile Anchorage International and the downtown area were evacuated.
An over-reaction? I don't know.
I think the concern for fuel was due to the diversion to Whitehorse, YT, Canada.
UAL93 was simply tragic no matter what happened.
Peace.