With the boom off, one centreboard out and two people holding the boat I would guess they are trying to launch or recover the boat and the line in the water is surf (at first glance it does look like a stern wake and the boat has nose-dived but that can't be what happened).

But then why are the rudders both down (and one centreboard), and how did it end up pointing straight downwind?

I think the sail is ok. It looks torn but I think it's just wrapped around the diamond wires and the clew is flying up.

Glad you explained what the stuff around the diamonds was, Roy. Must be a tough camera!