While the video says nothing about adding water, I have to agree with your conclusion. I've seen 18650s (most likely what that pack is made of) fail, and they normally just vent a large flame. If you add water to them during or shortly after the failure, they can literally go off like cartridges.The addition of water is what most likely set off the grenading.
It would be pretty easy to believe that somebody in that decent sized group, without thinking much about it, dumped a bottle of water on it trying to be helpful