I mean, obviously the unit messed up in not processing leave correctly.

The CDR also messed up in not noticing anyone's leave balance drop on the UCFR after the holiday block leave period. He's fairly clearly getting nervous about use-or-lose balances and running out of time and opportunity to put people on leave before end of FY.

Still--some of these SMs took leave, and they know they took leave. The CDR isn't wrong in believing that they should be charged leave--he is wrong in the methodology and motive.

An evil commander would pull up the holiday block leave tracker, and note who took significant blocks of leave in DEC. He would then pull the DEC/JAN UCFR to verify that no one got charged. He would then go on Facebook to download photos of your ugly asses at the Christmas party back in your bumfuck hometowns. Then he'd ask you to prove you were on approved leave, because he's pretty sure you might have gone AWOL.