The article said that EVERYTHING BUT GPS was encrypted. So they just attacked the weak point.
I know it’s kind of shocking to me. But that thing was completely in tact...no way they got it by accident.
I haven't seen the article that you reference, but I find that to be EXTREMELY unlikely.
The GPS system was originally designed to broadcast two signals: an encrypted high-precision code, and an unencrypted code with less precision. Military devices use the encrypted code. Civilian devices use the unencrypted code.
The unencrypted code was intentionally "dithered" in order to reduce the precision, using a feature called "selective availability" (or "SA"). The level of dithering can be adjusted. But, SA was eventually turned off in 2000, so that even civilian devices get the same level of precision as military devices.
However, SA can be turned back on/up at the drop of a hat, at least until GPS III satellites begin launching in 2014. Reportedly, those satellites do not have SA functionality.