This happened in another squadron: The Nights. Their only Air Marshal "bang50" kicked everyone EXCEPT the MORAF "The Best Ace" (as long as I knew the AM could only kick people BELOW his rank, so he couldn't touch his boss or other AMs). Well we have three options:
1. The Air Marshal has always been able to kick his boss or other AMs but simply nobody had done it (the most probable one).
2. The Air Marshal is able to kick his boss or other AMs since a recent update (probably the one that limited the squads to 40).
3. The Air Marshal isn't supposed to kick his boss or other AMs, but they can do it thanks to a bug.
Anyway, when everyone leaves a squad it's supposed to be deleted (or at least that's what I thought), but this time it didn't happen (you were very lucky Storm). I suppose it's related to Maddy's ghost
.