Thanks. I was using the phrasing of the OP. I took it as figurative- unable to imagine but it did happen. Such as this definition which is similar to def. 2 in your link but adds seems impossible dictionary.com/browse/incredible I apologize for the misunderstanding.

@JasonBassfordThe question was can "incredible" be used for something bad, versus only being used for something good. It did not seem to be in the sense that "I literally don't believe you. Your story is too incredible." Rather, my interpretation of the OP's use was in the figurative sense of "This ice cream tastes incredible!" Of course it is not literally unbelievable- the ice cream is right there. My answer was that one can also describe things that are bad using incredible figuratively as an intensifier. I am not sure how calling a tragedy that really happened incredible is different.