As I said, I'm not defending anyone (I'm sure both are decent guys), I've not read the small print of the service involved, but if I'm sold a service and invoiced for it and payment is accepted, then surely I shouldn't expect it to then be taken away from me due to a clerical error?
If I've not been invoiced and / or paid for the service, then that is a different issue.
This incident is unfortunate and I'm sure will be discussed for many days to come, but in my opinion the domain in question should reside with the party who were invoiced and the supplier should be sorting out the paperwork and fireworks as a result of the error in their system.