You’re absolutely right! The statement “will hell break lose” mistakenly uses the verb “lose,” which means “to be deprived of,” for the adjective “loose,” which means “free from restraint” or “disconnected.” That statement should therefore be corrected to “will hell break loose.”
This could be simply a typographical error or a case of misspelling, but there’s a big world of difference between “lose” and “loose” grammatically and semantically.