Yes, a real disaster for us now. He didn't just "dig" through, but bulldoze to where he thought Homer's Troy should be. Doing this destroyed a lot of the evidence of the actual Troy he was looking for. Some of this has been recovered and pieced together by later and better archeologists but still a great loss.

The best video documentary I've seen on this is Michael Wood's BBC series "In Search of the Trojan War" from 1985. Six parts covering the history of the dig and the background of the war and aftermath. Much of it is on YouTube I think.