Using dynamite to 'blow out' the fire by forcing the burning fuel and oxygen away from the fuel source.
It sounds to me like they were using the explosives to essentially force a change in fuel air mixture. Essentially the same idea as when the wind blows out your lighter or match. Just way more fun, because explosives. :D
You misunderstand the concept of shockwave, and no, there is no contradiction in my statement. I'm pretty sure you understood the sentence, but decided to move the conversation towards my personal behavior.
They both do retard access of oxidizer of course, but then so does nearly every other extinguishing method, starting from fire blankets.