This is crazy.

Meanwhile, undercover drug dealers posing as cops slowly back away

that might be the best use of that expression ever.

or were they just corrupt cops dealing that got caught and faked it.

There was thing thing here in Canada once where the cops decided to go undercover to stop a potential plot to bomb a government building by befriending the suspects, and arresting them in the act. The operation was technically a success, but an investigation found that the suspects were actually so hapless and stupid that they never would have got close to committing the crime if the police hadn't walked them through doing it step by step (including instructions for making a bomb that actually wouldn't explode), so they were released.