Israeli military vehicles stormed the al-Fara camp at 2 a.m. Wednesday, the Ma'an Palestinian news agency said.
Young Palestinian men began clashing with the soldiers, throwing stones and empty bottles at them.
Israeli troops fired ammunition in response.
A 27-year-old sustained a gunshot to the abdomen and a 23-year-old was hit in the hand, Ma'an said.
Locals said the Israelis detained four young men -- Muhammad Kamil Abu al-Summan, 26, Abed Fathi Mansour, 20, Yousif Jabir Abu Siyam, 18, and Mujahid Sawalmah, 21.
An Israeli army spokesman said only one person was arrested, and soldiers recovered a machine gun and ammunition.