Wickapedia on the subject
Coonass
It seems the term may come from the French word "connasse," which is without doubt a slur.
Nevertheless, it remains a popular term locally and is not considered insulting by the locals.
I have no doubt the initial reacton is caused by the more heinous slur coon, the origin of which is mystifying.
No doubt the story will not have a long shelf life but is an interesting study in media spin