I'm having trouble imagining why a rotary wing aircraft might need forward speed to take off. From my understanding hovering should be the easiest task for a helicopter to do because all the lift from the rotors is directed straight up. Unless the fuselage design provides some inherent lift itself?
Helicopters gain a lot of "translational lift" in forward flight. This is significantly more lift than gained from the rotor blades in a stationary hover.
I also suspect that the high altitude played a part in the incident... The visual cues may have been fine for that same maneuver accomplished at low alt but the turn radius will be larger and available lift is usually going to be lower at higher altitudes so you need more margin for the maneuvers.
The USAF has nearly 100 years of experience telling us that it's a dumb idea to hot-dog at low altitude, and we've been pretty harsh on pilots who get caught doing this kind of thing in the last 20 or so years. I suppose the Army has a little different perspective on such things.