OK yeah, I feel dumb now, as that's fairly obvious as you write it :D I think the current folder claim just broke my brain, but I believe you're right about what they meant (or what ChatGPT meant when it wrote that part).
But at least mv has some protection for the next step (which I didn't quote), move with a wildcard. When there are multiple sources, mv always requires an existing directory destination, presumably to prevent this very scenario (collapsing them all to a single file, making all but the last unrecoverable).
The current folder thing broke my brain too. I literally had to go to my terminal to make sure it didn't work that way, and confirm it was a typo. It was only after that I realized what the author meant to say...
But at least mv has some protection for the next step (which I didn't quote), move with a wildcard. When there are multiple sources, mv always requires an existing directory destination, presumably to prevent this very scenario (collapsing them all to a single file, making all but the last unrecoverable).