It does seem a bit odd sometimes, to be told you broke your arm near your shoulder when you fell on your hand. You’d expect the wrist to be broken in many cases.
The reason the upper parts of the bone may break is because of the shock as you land on your hand. The shock moves up the arm and causes the fracture. This is why it’s very important to try to not break your fall with your hands, although it really is an instinct to put that hand out there, isn’t it?