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I didn't see the accident, but I imagine she waved the bus into its turn without stopping pedestrians and bikes first. If that's the case, the pedestrian/bike should have used their head and stopped as they saw the bus turn, and the bus driver should have used his head and stopped when he saw the pedestrian or bike in his side mirror as he was turning.
If you think about everything going on in an intersection, there are 20 different legal traffic movements that the traffic cop has to be constantly aware of and directing. Lights do a better job without losing focus. Although people (including me) ignore lights pretty regularly.
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