Military chaos as fun breaks loose (5)

I believe the answer is:

snafu

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'military chaos' is the definition.
'snafu' can be an answer for 'chaos' (I've seen this before). I am unsure of the 'military' bit.

'as fun breaks loose' is the wordplay.
'as fun' can be anagrammed to 'SNAFU'.
But, I'm not sure how the anagram is indicated.

Can you help me to learn more?

(Other definitions for snafu that I've seen before include "Chaotic situation" , "in a bad state" , "confused activity" , "Customary confusion" , "Chaos (US slang)" .)

I've seen this clue in The Independent.

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