I want to start this by saying that I was not on during this 'glitch' and that all I have to go on is reading through what others have posted, here and elsewhere.
CG, you can not handle this mistake, and to let a bug out into the wild like this was a huge mistake, by rolling back for some and screwing over the rest. I understand everyone earns shard shop currency, and tracking it would be difficult, but just 250 crystals is a slap on the face for players who didn't have him. (Not to mention, if someone then used a maxed Malak to bump someone from a payout... It's a sticky situation)
The best possible handling of this situation, that will grant you the biggest amount of goodwill (a line item on a balance sheet that is hard to explain yet has value) would be to announce that these epic confrontations continue to unlock at 5*s. **
That way, we, the players, have a choice to star them up (for use in Raids/TB/Arena) or we can wait for the event to come back around. I can make an educated decision on maybe spending to get 'Malak' (or whatever future character) to say maybe 6* for stage 1/2 Geo TB, and wait for the event to roll around. Or not invest at all and have it take two events. Or the character is so OP I need it at 7* right away! (and can get shard shop currency every time it rolls around) Especially with Arena, having a nearly guaranteed payout is worth a ton in the long months between iterations of these events!
The fact is, you have a segment of the player base who used the event to get a 7* Malak. That wasn't their fault, you had the power to take the client down if it was a bad enough bug. A smaller segment of that group would also have used real money to purchase things like gear or relic pieces for that shiny new 7*. THIS IS HOW YOU CAN MAKE EXTRA MONEY!!!!!!!!! Seriously, it's that simple! Having the option unlocked to take a character higher gives the player an urge to buy that won't necessarily be there.
I start saving about a month before I unlock or anticipate an unlock, sometimes longer. For instance, my Malak has one of his two pieces to go to g12 premade and I am not going to unlock 7* for two months (current way). Suddenly having a 7* would definitely tempt me to part ways with some hard earned cash. (If you can see individual spending habits you might see how much of a good thing that is for you)
The best resolution for the GET debate would be to reset every single Malak in the game to 5* g11 (no finishers equipped), refund all GET currency that was spent on shards (mine is 55/100, so tokens for 140 shards), all gear above g11 which was equipped, refund all relic materials used, and then grant crystals to ALL players equal to refreshing the GET store an arbitrary number of times to unlock him the quickest to every player in the game.
Using my example, you would need minimum 10 sightings of Malak 15 shards to get there, up to 28 of the 5 shards, so giving 500-1500 crystals, 250 won't cut it!
This won't cost you a dime other than the staff member's time to implement, and builds massive good will and sets a precedent of how CG is pro-player instead of a scrouge McDuck swimming in money that seems to be the prevailing wind right now.
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Those who haven't had Malak get the more valuable shards, next time around of course they'll only get shard shop currency as well.
Then the event just runs like MT, Wicket, Capital Ships and the countless other events that reward shards for people beating it after the first run. Having said that, perfectly acceptable if they drop the rate.
This "bug" was the best thing they've actually done for the players in a long time (I can't remember the last positive for the player base and I have a pretty **** good memory), this was actually a great opportunity for them and in typical CG fashion, they **** the bed and turn it into a complete reputational nightmare.
Give everyone who had Malak unlocked the GET rewards of you can't make it a feature.