So, filtering the probable reality from the journalistic bol**cks in the article, it appears:
1. Hovering with a FD height hold mode engaged
2. Someone pulls the collective without depressing collective force trim release.
3. Collective subsequently let go, and is lowered by FD to regain the reference height. (As it should)
4. Helicopter starts vertical descent.
5. FD raises collective to reestablish height reference, helicopter enters VRS.