Everyone that entered the lottery should have a second chance - it wasn't fairly done

[Nihility]

they aren't going to undo won homes.

I think the only thing they can do fairly to everyone that was involved is along the lines of
reduce FC exclusive to like 10
open up 3-4 new wards(meaning every district so actually 15-20 + all the vacant small/medium in ishgard 11-18)
give the first lottery exclusivity to those that participated in the nightmare lottery as an apology(people will cry about being not allowed but then again they always do and if they didn't care to enter the first lottery what is their argument?)
then go back to the normal lottery/results pattern they initially intended... with the errors fixed of course