An update. The supervisor working on my award called back. Current status is that the original 420,000 points have been returned to my account (which I can see and appears to have been instant). The original reservation is still valid and I can see it but the new 240,000 point award has not been issued. Seems this can not yet be done but should happen soon. Will see what happens. Agent was very careful to reassure me that I had the room sill etc.