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This is a bit similar to what happened to me except that when I noticed the vehicle ahead had stopped I turned away much quicker so I didn't hit so hard and didn't crash.
That guy was quite violently projected out to the side.
I think the guy was lane splitting then pulled into the lane to let the faster rider past. Then when shoulder checking to get back out of the lane and continue splitting, he hit the vehicle. Pretty much exactly what happened to me.
I wont be so quick to let another rider past in the future. I'll take my time safely pulling in rather than focusing so much attention on getting out the way of the other rider. I also have a friend who totalled his nice car because he was being to focused on helping out another driver by getting out of there way.