On the one hand, we have 23 sightings a week, across the town, from a variety of people, including a helicopter pilot, over a sustained period of time. On the other hand, we have a government report that all of those sightings were of "stars, planets, or hobbyist drones". The people of this town have never seen a star before? Really? Is the government report really more believable?
It sounds like the scene in Men in Black, but even more lame. "No. Those weren't drones. Those were nothing."
"Mass hysteria" is an explanation that seems hard to swallow. These people weren't panicking, they weren't seeing demons or magic, they were making reports of real things (drones) acting in plausible ways. That a group of local government officials couldn't find any evidence doesn't seem to mean anything. What evidence would we expect them to find?
I'd like to know what the usual rate of false drone reports is in a typical town. Is this an average number of reports? More than average, and if so, why?
I work with lots of people who seem to have this attitude. When customers submit bugs that immediately think the customer is imagining the problem, or doing something wrong, or that the bug is magically a transient issue that isn't worth investigating or something like that. I think the reality is investigations are hard and sometimes yield nothing, but that doesn't mean we should jump to preposterous conclusions.