Am I right in guessing (assuming) the OP cancelled their "Y" (full) fare and rebooked it in a lower fare class? If they were upgraded with golds at the 48 hour window and cancelled within 24 hours of the flight then they were on a refundable fare.

Sounds to me like the OP books fully refundable tickets because their travel schedule isn't solidified. Then the day before (or possibly day of) travel they know they are taking the flight and rebook the flight in whatever lower fare class is open and for sale at the time.

Seems to me the CPU logic is working fine. But even if you want to argue that a 1K on a lower fare should be ahead of golds...it's the game we all play and the rules are known. This is a highly TRANSPARENT process. CPUs process at 96/72/48/24 window. If CPU bucket is open and elites are on the list then they get the upgrade (based on fare class, etc. etc.). If you cancel your ticket and rebook, whether the same flight or not, you are back in queue for CPU. There is no reason to argue this process. It's the known rules. If you wanted to save a few bucks by rebooking your full fare to the lowest fare after your CPU processed then you deal with the consequences. And even if it's not a rebooking from full Y to whatever fare class is available, the flyer still knows the consequences.

There is no difference between this and a GS who sits in the back while lower level elites fly up front because they burned an instrument or miles long before the GS ever booked the flight. I know when I'm booking a flight that lower level elites may very well be sitting up front. They chose to book earlier and apply some instrument to get there. Good for them.

-RM