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In response to Mr. Revell's question, I offer a quote from LCol David Bashow's book Knights of the Air, page 116:
This recommendations was completely without precedent, for there were no witneses. However, Rule Numbe 12 of the Warrant for the Order of the Victoria Cross states that, in the absence of the establishment of a claim on the spot, the monarch will confer the award, "but never without conclusive proof of the performance of the act of bravery for which the claim is made." This statement implies that a thorough investigation of the circumstances of the action would be required. When higher headquarters sought further supplemental information to the Victoria Cross recommendation on the raid, this was provided in a report to 13th Wing on June 30 by Grid Caldwell, the acting commanding officer of 60 Squadron. After a full nine weeks of staffing and consideration by the War Office, the award was duly gazetted on August 11, 1917.
Evidently, someone somewhere felt the award was justified. After all the VC hasn't handed out frivolously.
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