The faction assets are sold to the market for their current market value. Specific factions assets (see list in Factions: Faction Assets) will be destroyed after being sold."
1. Does this mean that any facility or city slab owned by a dissolved faction just disappears?
2. What if there was a PC inside a faction's ship or space station in orbit, and that ship or space station is destroyed upon the faction dissolution? What would happen to that unlucky PC?
I have no idea what that paragraph is supposed to mean, but as far as I know all the assets of a faction except credits, stocks, datacards, and NPCs are sent to the market to be purchased by other players when that faction dissolves.