"prostrate" is used more to imply unbelievable grief or submission. For example, when you see someone in a newsclip who has witnessed the horror of a car bomb or similar atrocity, and they are on the ground in despair, they are said to be prostrate.
I am more convinced that the guy said and meant Cambridge prostituted itself with the dictator, although some misheard it as 'prostrated itself' and posted a different version online.
By the way it is very pathetic of the Chinese media to have been ordered to whitewash the description of the incident as 'a disruption' without telling people what really happened. They made a big thing out of the shoe thrown at Bush by rationalizing the incident in Iraq and now they've fallen into a kind of dilemma. Any poster refering to the incident as shoe-throwing has been deleted, even for those comdemning the thrower. People can only be informed that a speech disruption occured and no further details are available.
But this is an Internet era and people have been for long seeking other sources for information. What they are doing is just another proof that the shoe-throwing may have some merits.