Basically, as opposed to launching one big satellite, like the one that the navy had to shoot down, you launch fractionated satellites, basically a cluster that orbit close to one another, and together provide the capabilities of a single larger satellite.
It means that a launch or satellite failure won’t remove the capability, though it may reduce performance somewhat.
The program is from DARPA, and it’s called “System F6” (future, flexible, fast, fractionated, free-flying spacecraft united by information exchange).