Yeah, this is "old news", and as I live about 200m from that place I "know" the real deal. The place is just beside Los Castillos across the road from the cemetery when you are heading from Sosúa to the airport.
I made some comments about this case in the La Cienaga thread.
But to make the story short, this area (Los Castillos and Marbella) was originally owned by the Los Castillos family (a lot of their descendants still live here), but has been sold off little by little, and some are still owned by the descendants. So not really sure about when, but probably a couple of decades ago someone in the family sold the Marbella part to the government. So until recently, the government was the owner, but then they decided to sell the land to a private company, that are also the owners of the land on the other side across the road, just beside the cemetery and according to rumour are planning to build some hotels or whatnot.
The issue here is, that some of the descendants (according to the news 3), have gone around and been selling that land to others without having the title to do so.
People, in general, have been fully aware that there is something shady about this, or at least I've been aware that those who bought land over there have not done sone with correct titles and so on. I remember myself a couple of years back when I got offered to buy over there, but I was warned by friends to avoid that area as it would most likely bring legal issues in the future (which it now has).
So then 1 month ago the government (actually driven by a lawyer from that private company, who currently owns the land) started the eviction process, but they only continued for about 4-5 hours because of the outcry, and then later the same day those living there protested. They themselves say they were not notified, which is frankly not true, maybe not everyone was informed, and probably not informed which day they would get evicted, but they did know they sooner or later get evicted and some officials had been going around the weeks prior to that, informing "some" about what was going to happen.
And of course, as I stated in the La Cienaga thread, some of these people actually got tricked by those selling the land that was not entitled to it. So then when this happened many claimed they had the ownership of that land, just because they have "a receipt" of purchase. But in general, it's been known that sooner or later this will not end well.
About the orphanage, no it's not been affected, it's not the entire area that has been affected, just parts of the area. So the orphanage is still there, at least until further notice. Also, the owner of Cable La union lives there just beside the orphanage, that house is also not affected.
Currently, I'm not aware of what has become of that, as it has now passed more than 1 month since this happened, and there are still people living there.
Some say they have struck "deals" with the real owners, to purchase the land (to a very high price).