It's a glitch in the Matrix.

From APOD:
Upon inspection and contemplation, a leading hypothesis for its cause has now emerged. In sum, this hypothesis holds that a lightning discharge in a thundercloud can temporarily change the electric field above the cloud where charged ice crystals were reflecting sunlight. The new electric field quickly re-orients the geometric crystals to a new orientation that reflects sunlight differently.
In other words, a lightning discharge can cause a sundog to jump. Soon, the old electric field may be restored, causing the ice crystals to return to their original orientation.

TL;DR: It was aliens.

I'm not gonna say it was aliens... but it was aliens.

looks like distortion caused by some liquid near the camera (on lens or window). Some sort of light diffraction is happening like when you look out your wet windshield and see how the little mounds of water on the windshield distort the image.

-karl