Yes, it is true and violation can be very costly. The IRS decision was designed to stop serial lending from IRA accounts, which was never the intention of IRAs. You can only roll over one such distribution back to a TIRA account. If you requested the distributions from a single IRA account on the same day but the distribution came out on different days, there may be some leeway.
Otherwise, if you are still working or retired from the TSP and still have a TSP account, you could escape this rule by rolling any of the distributions to an employer plan that will accept IRA rollovers.
If you are not in a situation for the above solution, Plan B is to roll back the one larger distribution you legally can, and convert the other 120,000 to a Roth IRA. While this still results in taxes due, it eliminates the 10% penalty if you are under 59.5, and preserves the funds in a higher quality IRA, a Roth. The Roth has no RMDs and all gains are eventually tax free, and tax deferred within the Roth until the Roth is qualified. So there are many advantages over just keeping these funds in your taxable accounts, even though you get hit with a large tax bill for the 120,000 conversion.
If you are under 59.5, you also cannot withdraw the conversions for 5 years or you will owe the 10% penalty. This penalty disappears at 59.5, if that comes before the 5 years is up.