Wow, you have GREAT visual acuity!
/NOT doubting you one bit...
It was just the right conditions.
Early in the morning about 8:30, deep dark blue sky, we were SE from the balloons so we were looking to the NW.
We were just watching the balloons and noticed one looked like it was about to hit the basket of the other balloon so we were concentrated on the balloon when it did hit and all you could see was just a speck falling through the air.
We didn’t find out until later that what we saw falling was a person.