This is what you call lucky.
While it's normal for planes to dive down after the drop, they're supposed to know where the jumpline is and not to go into it! This pilot really cut it close, and ripped the drouge off so this instructor was forced to pull his reserve right away. If they had hit the wing, they all (including the pilot!) could have been crippled or killed instantly. I'm glad these people all made it out alive!