It sounds as though the young woman who was shot and killed was in back of a camera getting a shot of Alec Baldwin's character "firing" the gun. The producer was standing behind the woman and the bullet hit him, too. The gun was a prop and wasn't actually supposed to fire bullets.
I think that Baldwin is a bit of a jerk but he's the actor on the set and someone yelled "cold gun" before he picked that gun up to rehearse with it.
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