The news about the confusion is reported here in greater depth on CCN:
https://www.cryptocoinsnews.com/litecoin-price-falls-after-segwit-confusion/

where Charlie Lee gives the background details i.e. 1st hand from the only person in a position to know the full story.

The real news is that:

1) Litecoin is about to join Bitcoin and Ethereum to become one of the three coins supported by Coinbase;
2) Litecoin will soon have OMNI capability to 'merge' with Bitcoin seamlessly to produce faster and cheaper transactions for Bitcoin (which seems to have escaped most people's attention); and
3) last, but not least, Chandler Guo has joined the Litecoin Foundation.

Based on 1), 2) and 3) alone there will be an increased demand for Litecoin. There will be more transactions for Litecoin miners to process. These milestones should ensure sustained market interest.

However, when SegWit is activated, it will open up lots of interesting possibilities, including Confidential Transactions and Lightning Networks (the Litecoin and Lightning Networks teams are currently working together, behind the scenes).

In the light of 1), 2), 3), and SegWit, this paper by Litecoin creator Charlie Lee needs to be read ... and re-read:
https://segwit.org/my-vision-for-segwit-and-lightning-networks-on-litecoin-and-bitcoin-cf95a7ab656b