Sorry to hear about your misfortune
This is one of those really strange unexpected gray areas of the SPG program/doing business with Starwood.The policy has been discussed for years in public and private forums and elsewhere around the world.
Having never been a no show after twenty plus years of travel I can say I haven't been in your shoes.
Though I easily could and certainly relate to your pain.

As the previous poster states it is a pretty well known fact amongst many a seasoned member what the official policy is/states. Regardless if any of us think it is fair.If I were in your shoes I would take it up with the General Manager and or their Executive Assistant nicely explaining the situation and what your expection was being this is I will assume a first time experience for you.
From there I would posistion why it would be in the hotels best interest to work some kind of reasonable credit out toward perhaps a future stay or some other reasonable good will gesture solution

Most Starwood management typically in my own experience can be very helpful in such situations sometimes exceeding expectations.Good luck