I thought under API it specifically states to enter the exact name as on your passport. I think WOW was being extra cautious but they could have easily ammended the API info at checkin so as long it meets the manifest cutoff time.

The DHS suggests having the API on file 72 hours before the flight but can be entered up until 60 minutes before departure. Think of last minute business travellers who board flights daily their API may only have been entered 120 minutes before departure and were cleaed.

If API OK or DOCS OK are on the boarding pass then you are good to go. I think there is more to this story perhaps the passenger missed the checkin cutoff or was not cleared onto the manifest or failed to present themselves at the gate on time or the flight was oversold.