With a quick look, it looks like this: Plaintiff filed an action in state court, the action was removed to federal court, probably citing the size of the claim and diversity of the parties. The feds sent the case back by remand to state court. Now, this is an interesting move. Defendants usually do better in federal court.

The protection addresses just the sale and the misuse or criminal activities. The state court found apparently that the action, alleging the BS that it was a military weapon etc. did not fall under the protection just by analysis of the actual language.

It was just a denial of a motion to dismiss, a very preliminary part of the litigation. Take the tinfoil hats off, we're safe for a little bit.