Regarding the verse "What is the matter with you that you are divided into two groups concerning the hypocrites?" [Nisa 4:88], he said that some men from among the Companions of the Messenger of Allah ﷺ turned back on the Day of Uhud. The people became divided into two groups concerning them. One group said, "Kill them," while the other said, "No." So this verse was revealed, "What is the matter with you that you are divided into two groups concerning the hypocrites?" [Nisa 4:88].He also said that it (Madinah) is Tayyibah, and he said that it expels impurity just as fire expels the impurity of iron.
حدثنا محمد بن بشار حدثنا محمد بن جعفر حدثنا شعبة عن عدي بن ثابت قال سمعت عبد الله بن يزيد يحدث
في هذه الآية {فما لكم في المنافقين فئتين} قال رجع ناس من أصحاب رسول الله ﷺ يوم أحد فكان الناس فيهم فريقين فريق يقول اقتلهم وفريق يقول لا فنزلت هذه الآية {فما لكم في المنافقين فئتين} وقال إنها طيبة وقال إنها تنفي الخبث كما تنفي النار خبث الحديد
Agreed upon by Bukhari and Muslim. Bukhari narrated it in the Book of Tafsir, chapter "What is with you, that you are two factions concerning the hypocrites, while Allah has cast them back for what they earned" [Nisa 4:88], hadith no. 4589, from Muhammad bin Bashshar. Muslim narrated it, hadith no. 1384, from the hadith of Shubah, with the same wording.