Not that bizarre if you assume AXC Crystal was ahead of schedule to pick up a pilot to enter Tokyo bay. To maintain its slot in the queue, it's moved south of the shipping lane to run a racetrack c.10 miles long (the length of the U turn)
At this point Crystal and Fitzgerald are running roughly parallel with Crystal c.1+ miles ahead and to starboard, making her double "privileged" and Fitzgerald is supposed to keep out of the way.
Speculation: the Fitz OOW is playing silly buggers, seeing how close he can get to the port quarter without being noticed.
Crystal turns to port to run the racetrack again, and finds a ship that shouldn't be there.
Unquestionably the US Navy people were asleep at the wheel. Someone is getting court-martialed, of that I am sure.