In the location that the initial flare is fired, a pinata falls into the battlefield accompanied by special music. The pinata then bursts and 16 projectiles in various patterns and colors are released. While most of the patterns spray across a wider area doing little damage, you can get lucky and have all projectiles hit very close to where the flare hit, potentially even hitting them all. This is extremely rare but for this alone it is worth trying to land the flare perfectly on an enemy.
Congratulations on making it this far. You suffered through so many Pinatas that you get 2 extra Pinatas to fire at once. The amount of projectiles and damage per projectile are reduced but tripling the amount of pinatas leads to a lot more total projectiles flying around. Before the Pinatas explode the 3 flares have to land first. If you fire at a 45 degree angle the flares will land very close together and thus the general spread isn't as bad.