I guess you're right, Chen's brutal treatment could have been orchestrated by CCP hardliners who were hoping to engineer a situation like this that could embarrass the current leaders. Maybe if the Politburo hadn't tried to pretend Chen and his family weren't being persecuted, they wouldn't have been backed into the corner they now find themselves in.
I think the "lol" is on you. If you knew about this case, you would know that there's been far more than "a few" guards patrolling the house and the approaches to the village. It took several just to deal with Christian Bale when he wanted to visit - and he didn't get anywhere near the house.
Chen's treatment was orchestrated by the local government, Beijing didn't care what they did with him.
It takes less than $10,000 per year to keep 5-6 guards on him in that place, are you suggesting there were a few hundred guards around? That's assuming they were hired specifically for that reason, they might very well have been previously hired hands that were sitting around doing nothing.
Besides, who said all the people in the Christian Bale video were guards? Some of them were probably locals who were just hanging out with the guard, it is a boring job after all.