Thanks to everyone's replies - I like the suggestion that 500+ nights without incident is actually something that should encourage me to give the hotel the benefit of the doubt, so you guys did a good job talking me off the ledge.
The 12k points service recovery became 25k due in no part to any action i took. An employee at the hotel accidentally awarded 25k to someone else, and when the hotel manager found out he leveled me out.
TL;DR: Got 12k points, then upped to 25k points because hotel employee made a mistake