OP sorry to hear about this, it does suck when this kind of thing happens.
To be honest, it sounds like Priceline dropped the ball. You should try go after them, but maybe you consider the amount not worth the trouble. It will probably be a long and hard fight.
As said upthread, it could have been a lot worse. This is why many posters here do not trust online travel agents, even if it means sometimes passing on a good price. That's not much consolation after the fact, but at least the experience you gained didn't cost you thousands, as has probably happened to others.