I think the lesson here is don't ever talk to an agent without a specific plan. Don't ask for help, ask for implementation.

But that general observation aside:

Yes, it sounds like AC in PIT screwed up. If things get as far as a tribunal hearing, they aren't going to accept "canceled by accident" as being OK, so I'm with canadiancow over Adam Smith on that point.

In theory she is due compensation, I think $1000 it being >9 hours.

That process will take months. So take more than a few days to write, edit, review and re-edit the formal request to customer service. Be factual and dispassionate.