Draped in red, white, and blue bunting wrong.

It refers to people (usually politicians) wrapping themselves in the U.S. flag. Hiding behind the flag, in other words.

I don't think so in this context. I think it, along with the rest of the phrase, refers to to the unmistakeable, obvious, glaring quality of the 'wrongness'.

Bunting of course is not the flag. One dresses items in rw&b bunting (undeniably showy) to catch the eye, to say "da da da-dum-dum (cue "Washington Post March") look at this!"

"..unmistakeable, obvious, glaring quality of the 'wrongness'."would fit the context. I had just never heard the bunting bit used this way before. I rather like the whole sentence.

Could you post a link to the story?

Story is at slate.msn.com/ id/2099617/.