I'm more curious about the ~* part. Is the behavior triggered by a tcsh peculiarity that no longer works that way these days? Why would ~* trigger he behavior of deleting every home directory?
And aren't Emacs backup names appended with ~ rather than prepended? In that case shouldn't it be "~" (anything ending in ~) instead of "~*"?
The story sounds a bit flimsy regardless. Not that it's improbable but rather the opposite, rm -rf* stories are a dime a dozen.