
I would think that the group of dogs raised her stress levels - she might be ok with bigger dogs but a group of them approaching her is going to be intimidating for most dogs (I don't allow mine to do it to any dog of any size for that reason, unless we know the other dog very well); then throw in the little dog which you know already she is reactive too (and which to her, is likely to be a lot less intimidating than the big dogs) and it'll be too much, and she'll react badly. That's what I think might have happened, anyway; impossible to say for certain without seeing her, of course.
You need to work on her little dog issues - have a look at BAT training by Grisha Stewart, that'll help teach her that she has other options than reaction (and that you will respond in a rewarding way to her signals). You also need to make little dogs themselves a positive thing - pair them with food, if she likes her treats; every time she sees one at a distance, shovel her full of food :-P I find pairing the two methods together quite effective - I've done it with my oldie, initially just the food at a distance then bringing in the BAT once she was starting to look at me for a treat. Tia's first reaction when she first got here - particularly with little dogs (easier targets for her) - was to bomb straight in, loom over them in a very bullying, threatening way, and if they reacted, nip or pin them.
This morning, she started to approach a small spaniel who she and I both know is very submissive (her favourite type to bully, before), got within about 6ft, and stopped in her tracks when the spaniel gave her a calming signal - she then gave a lovely lip lick and head turn, and walked away back to me. This is all because she's learned that giving proper signals and moving away both get rewarded with either distance or food (or both, for a very good one). She's relaxed no end.
Importantly at this stage for you, is not to let her interact with little dogs unless it's totally under control and managed (i.e. a controlled setup), so she never has the chance to react - set her up for success. The BAT book is on Amazon and elsewhere, it goes through everything very clearly including how to go about sorting both artificial setups and real life situations. Plenty of vids on youtube to demonstrate it too.