Apparently the waitlist system for awards has changed.

When I've done it previously they would book (and charge) you for business, seat you in economy (as that was all that was available), and waitlist you for business. If the waitlist didn't clear, the difference in miles between economy and business were refunded.

This time I called in to get them to do that, and they said it's changed. You now need to book what's available on the website, call to waitlist for business, and if the waitlist clears they will charge the additional miles when they reissue the ticket. Sure enough, after booking (in YN) I called back and a second agent confirmed that was how it worked and waitlisted me.

I'm guessing they might have made this change in order to handle the existence of YN awards - they can't easily refund the difference between IN and YN if you don't clear as the price for YN will vary.

Sounds like I definitely should be in 'IN' rather than 'I' - I'll try calling again and report back...