Bad luck Howard. (Too bad the same thing didn't happen in my favor that time I battled you for a salesman sample panel you ended up with!)
Anyway, seems reasonable to me that they would be justified in cancelling the sale and listing it as a do-over in the next auction as the best resolution for all involved.
Whoever won it will likely feel annoyed and that is sort of bad PR, but ultimately I suspect their primary contractual responsibility is to the consignor, so if there was a software flaw that prevented the highest value sale, then I can't see any other way out except to void the low sale, apologize to all for the inconvenience, and then list a re-do at the next available opportunity.
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