Soldiers opened fire on the civilians near the town of Moyale on the southern border with Kenya after mistaking them for members of the banned Oromo Liberation Front (OLF) who were attempting to sneak into the country, Ethiopian News Agency (ENA) reported.
Kenya's Red Cross is giving aid to people fleeing the Ethiopian border town of Moyale amidst an ongoing military operation, according to its Twitter account.
On Tuesday, the command post set up to oversee the implementation of February 19 State of Emergency said a unit of soldiers acted on incorrect information and killed the civilians "mistakenly" - a claim the mayor of the town contested, saying there were no armed people in the town.
The Red Cross said 2,000 people have arrived in Kenya so far.
"The displaced persons are hosted in four centers namely Butiye (500 persons), Somare (400 persons), Cifa (100 persons) and Sessi (1000 persons), some of who are staying with relatives and well wishers", the March 12, 2018 KRCS statement added.
It said family kits were immediately released including tarpaulins, kitchen sets, mosquito nets, bar soaps, thermal blankets and jerrycans.
That unrest, which spread to the neighbouring Amhara region and caused hundreds of deaths, pushed the government to declare a 10-month state of emergency in October 2016.
Prime Minister Hailemariam Desalegn has resigned last month saying he had done what he was able to do to solve the problem in the country.