A crowd of people standing next to a shack labeled "Green Jungle."
peoples are standing
Just because a crowd of people are standing next to a shack labeled 'Green Jungle' doesn't mean that every person is standing.  The second sentence reads "peoples are standing".  This does not really say anything that cannot be inferred from the first sentence.  Since the second sentence uses "peoples", it could imply that each person is standing.  When a crowd of people are standing, some of the people within the crowd could be sitting or lying down instead of standing.
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