Students at fake university in Michigan created by ICE can sue US, court rules

I still don't understand how anything these students did was wrong, and how anything ICE did was not fraud.

My understanding from back when this first came out was:

1. ICE created a "university" and made it as real appearing as possible

2. ICE advertised their university to non-americans

3. ICE's university told the applicants how to apply for student visas

4. The students came to what they were - by design - led to believe was a real, accredited, and good university

5. ICE arrested the students for immigration fraud and stole their tuition money

I do not understand on how (5) did not violate 4th amendment on multiple grounds, and I'm not sure how this would not be simple entrapment even if there was some belief/knowledge the school was not 100% above board.

I would like to read from the perspective of ICE justifying this behavior. This seems like straight up fraud

How can an university be fake? Like didn't those people actually go there and study?

Wonder how this will jive with the supreme courts recent decisions on standing.