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The Bungeling Empire was a villainous organization that the players were said to be pitted against in several different games created by Brøderbund software. The first such game was Lode Runner, although the imperial nature of the enemies in Lode Runner was not really integral to the setting. Raid on Bungeling Bay actually pitted the player against the Empire directly, attacking its infrastructure while defending the aircraft carrier which served as your base. In Choplifter, the Bungelings were said to be behind the kidnapping of the hostages you're charged with freeing.
There is little characterization of the Bungelings as a people, so it's likely to be little more than a recognizable, catch-all badguy that the players can fight. Hey, even the Bungelings you kill in Lode Runner respawn, so it's all good.