ISC versus Horde question

[RichardH]

So played ISC versus Jokers versus The Horde yesterday and something came up.

The Fleshmaster says:
"Nigthmarish vision (perm)
When a fighter spends SP to activate an action special ability or an effect of an action special ability, this ability cannot target nor affect in any way whatsoever an allied fighter within 25cm from the Flesh Master."

My Carmin Ronin walked behind the fleshmaster in Charge range so within the 25cm and activated his Smokescreen.

So the disscusion was that the Ronin couldn't activate this abbility because he was within those 25cm of the Fleshmaster. The fact that none of the Horde could charge or shoot him means that it affects them.
Or does this only mean for abbility's like Ronins Circular stroke, were I realy have to Target one of the Horde.

We decided it could be done because the Smokescreen didn't inflict damage...
Whats the right way to play this??