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So I was messing around with my trojan hacker in a HQ assault, taking down drones from concealment. After a while enemy pods started gathering around the drone wreckage, standing still there without taking cover but entering overwatch. I am still concealed.

Depending on difficulty level, overwatch may be a valid yellow alert activity. Finding a downed drone probably triggers yellow alert.

Right. A pod that spots a corpse will go on yellow alert. Although normally they'll move around until they actually spot you. Were they all going into overwatch or just say the MECs?

just the sentrys and mecs. Didn't know they could go on overwatch on yellow alert without being activated first. It's still weird all the pods in the map (except the one with the general) eventually were sitting next to the drone.
It felt kinda cheesy to hit 25+ aliens with one rocket, but... I considered it a revenge for all the times the game told me "you can step here without being spotted".

I read this as "Weird Al behavior", and thought Weird Al Yankovic had been added to the game

needless to say, I was definitely disappointed