> collision probability of 1.3 percent, with the two satellites coming as close as 190 feet (50m)

LEO orbits have speeds around 7.8 km/s (rounding up to ~8000m/s for quick calculations) - this avoidance detection is saying that the two satellites both traveling at 8000m/s would be in the same 50m box at the same second.

A quick calculation shows that the collision avoidance is operating at least the millisecond level to predict this collision (50m/(8000m/s) ~.005 seconds.

One thing someone once mentioned to me is that space is big and things travel fast. It's hard to believe that the two satellites (most likely each <1m in diameter) came "close" to colliding, when a half second later they would be 8000 meters apart.