Dynadot cancelled renewal to cost $500+ instead of $40 late fee

Catch.Club Catch.Club
I am throwing this out in the open as I believe Dynadot is refusing to do the right thing here.

I paid to renew 4 X domain names in on 20/01/23. The names had expired 21/12/22. A new Reg + 1 early renewal was also included in that order.

A few days ago, I got an email saying the names had been deleted from my account.
Basically, I renewed my domains and left on 20/01/23 (and could have easily paid a late $40 if the system showed that at checkout) but to now be told that I have to pay an additional $500 for names that I paid for their renewal within the allowed time-frame is shocking and disappointing. Also bear in mind that the late fee can be removed by Customer Support if you ask before you checkout.

The response to my emails to them at Dynadot was that the domains were 'IN REDEMPTION' when I renewed. ( Expired Dec 21, I renewed Jan 20). The response on Namepros here from Dynadot was that they cancelled the order because of a fee discrepancy (essentially the $40 renewal fee that their system did not request at checkout). They could have cancelled the new reg or the early renewal but no they cancelled this particular 4. Had the names gone to auction, I would have got a notification that would have let me something was wrong.

Am I wrong asking Dynadot to pay cover the extra $500ish that it would now cos to 'redeem' the names and put the names back in my account? For their own $40 gain which I could have paid if their system requested it, they are going cost me $500ish or worse - those 4 domains.
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..... Being resolved
We met in the middle on this and the names have now been restored to my account. 🙂 Thanks, everyone.
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