Yea I ended up calling support and handing the phone over to them and nothing was able to be resolved. In the end their response was this is the wrong department and you have to wait until the morning. Basically nobody could "clear" that flag. Buying the second ticket was not the problem. They would gladly sell us a new ticket for much more, but were adamant that was our desicion and said they couldnt guarantee the other charge would ever be refunded.
And yes, it was the airline flagging the purchase. The CC had no problems.