You can interpret whatever you want. Maybe this town was infested by zombies and the Combine never noticed it? Maybe the town was under a riot because there was a shortage on sugar? I don’t know. Use your imagination.
I apologize for the blue lines. It’s in-game rain and I couldn’t get rid of it no matter what. I tried yelling at it, punching my monitor, built a giant roof over my pose. Nothing. Oh well.