The most common and most likely answer to this crossword clue is the 4 plus 7 letter word GERM WARFARE
I've seen this crossword clue in The Daily Telegraph
G
E
R
M
W
A
R
F
A
R
E
Buddy explains!
The straight part
We know that "Hostile little bugs in destructive action" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case hostile little bugs in destructive action = germ warfare.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.