I've seen my fair share of yahoos promoted to O4 and O5. Heck, I was hoping I'd be one of them before I retired. I've only seen various levels of incompetence tho, nothing at this level of crazy.
Tho I've been out for a few years now and things may have changed with the level of deployments my old comrades are experiencing.
I would assume the guy had the option of just resigning his commission. Prolly would have to pay back his school $, but if he was dead set against the Army's mission it would have been a much better option than facing a firing squad.