Eyewitnesses told the BBC large explosions rocked the al-Mawasi area shortly after midnight and flames could be seen rising into the sky.
Khaled Mahmoud, a volunteer for a charity who lives near the site of the strikes, said he and other volunteers rushed to help but were stunned by the scale of the disaster.
“The strikes created three craters seven metres deep and buried more than 20 tents,” Mr Mahmoud said.
Unverified videos showed civilians digging through the sand with their hands in an attempt to rescue Palestinians from a deep hole caused by the airstrikes.
In a statement, an Israel Defense Forces (IDF) spokesperson said the military had attacked “significant Hamas terrorists who were operating within a command and control center embedded inside the Humanitarian Area in Khan Yunis.”
“Prior to the strike, numerous steps were taken to mitigate the risk of harming civilians, including the use of precise munitions, aerial surveillance, and additional means,” the spokesperson added.
“The terrorist organizations in the Gaza Strip continue to systematically abuse civilian and humanitarian infrastructure, including the designated Humanitarian Area, to carry out terrorist activity against the State of Israel and IDF troops.”
Hamas rejected the Israeli military’s claims that there were Hamas fighters present in the area, calling it a “blatant” lie.
“The resistance has denied several times that any of its members exist within civilian gatherings or are using these places for military purposes.”
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