Looks like the snowball is starting to pick up speed, CBS News has continued its reporting on the issue and ATF agent John Dodson has come out publicly and started naming names and spelling out what was done:
And in a related story, it seems the Agent Brian Terry who was killed by the Gunwalker AK47 was under standing orders to use less-lethal beanbag loads. They opened fire on the smugglers with beanbags, pursuant to a standing order, and the smugglers returned fire with real bullets.
BP first denied this as a "bizarre interest fueled rumor" but records have revealed that the BP did in fact issue such an order. Sounds like there is a mess on every side of this issue: