There is an update on the incident. Both soldiers from the incident were questioned, the one who shot Castleman was then arrested but has now been released to house arrest.
The interesting excerpt from the article for the purposes of our discussion is:
Following the Military Police investigation, the IDF will decide if criminal charges should be brought against Frija. IDF protocols do not allow soldiers to shoot someone who raises their hands in the air, and officials say the soldier’s conduct during the incident was not what was expected of him based on the norms and values of the military.
Also the IDF Chief of Staff is quoted as saying "we emphasize the need to stick to the basic and required rules in complex situations like these, shooting in a civilian environment. Do not shoot when the threat is lowered, and we do not shoot at those who put their hands up.”
The attorneys for the soldier in question say the available video does not show the situation from his perspective.
There is video of the incident on twitter, and the tweet is embedded at the link. Watching it I found it difficult to understand exactly what was happening all the time, going to twitter to be able to enlarge to full screen didn't help me very much. I can see a person I assume is Castleman on the ground with hands raised, and then lowering them to open his jacket; the narrative indicated he opened his jacket to take out his wallet to show them his ID, however I'm not clear if that was before or after he was shot, or how many times he was shot. I suspect the LE folks here will get a lot more out of it, look forward to their comments.
Judge notes issues with prosecution's case against Aviad Frija, who is suspected of killing Yuval Castleman after he dropped his gun and raised his hands in air
www.timesofisrael.com
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Meanwhile I just went looking to see if I could find any newer updates, and of all outlets, CNN has the video with commentary explaining who is who and what's happening:
They also interviewed Castleman's best friend, who is a police officer, and he said the actions of the reservist who shot him were contrary to protocol every Israeli police officer and soldier is taught.