Anything is possible and this idea or one very much like it has been proposed by Dr Vallee many years ago.
I assume you are familiar with his books?
It has been a while since I have read any of Vallee's writings at length. His views certainly fit the conflicting spectrum of evidence better than most. Frankly though, there are times when I feel a good old nuts-n-bolts solution would be a lot less disconcerting than the alternatives. How could we possible hope to contend with something the nature of which we may incapable of understanding?
I've got a bit of a theory that might explain this sighting, at least partially. There is a strange illusion that occurs around a source of light at night, that creates a sort of circular pattern of illumination. This occurs because the light source preferentially illuminates objects that are aligned with it.I recall a sighting from a CUFOS journal in which the witness stated that the UFO he saw flew a circle around the moon. Of course, in order to appreciate this maneuver, the observer had to be in a very specific location - implying that the UFO performed this stunt specifically for the benefit of that person. To me, that indicates the object wasn't part of objective reality - it was a display of some type put on for the witness. But for what purpose? If the phenomenon is trying to convey some message to us, they're doing a lousy job of it.