After Brandon Lee died from the same thing, there were safety measures that were put in place (that probably only apply in California) when using any kind of gun on a set. One of them, I believe, is having bulletproof glass between the gun and target (in case something was lodged in the gun, it could be fired by blank just like a bullet). I'll bet these safety measures were not followed.
He's also a producer of the film, which means he might be liable in that regard, too.
Considering that multiple people were hit I don't think it was just a squib round. It was a revolver loaded with live rounds instead of blanks.
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