I had a flight a few weeks ago where I'd paid a very nominal amount in advance to upgrade to the FC cabin (really short connection flight). The aircraft was subsequently downgraded to a CRJ-200, which obviously doesn't have first class. Looking back at my past itineraries I noticed that the flight ticketed in Y -and- my upgrade fee (1) wasn't refunded, and (2) PQPs for the upgrade fee posted.

I guess I'm wondering whether this was an error? Normally when I pay to upgrade and then end up losing the seat for an equipment swap I just get a refund on the upgrade fee after the flight completes. Does it play out differently if you ticket in Y? I'm not actually complaining since I could use the PQPs and it was still cheaper than paying for an accelerator. Just curious.