What does dislocation mean? (not about bones but situations)
A dictionary defines it as "Dislocation is a situation in which something such as a system, process, or way of life is greatly disturbed or prevented from continuing as normal." Could you give me an example situation?

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It's looks like in your case "dislocation" close to some kind of "disorder". When it's happens  everything goes wrong. Here war can be the best example.
In physics dislocation could means the lack of an atom.
Normal structure :                    -0-0-0-0-
Structure with dislocation:   -0- -0-0-

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This link has lots of examples: http://sentence.yourdictionary.com/dislocation

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