Update - the hotel cancelled my reservation and the points have returned to my account. The hotel then replied to my email asking to be re-accomodated at an alternative hotel and said that I can stay at the Alila Seminyak for 32,000 points (cash rate $420) or the Andaz Bali for 30,000 points a night (cash rate $465). The points/ cash rate of my room was 30,000 / $704. I had reached out to World of Hyatt directly and will see what they say but it seems I am SOL otherwise. Very disappointing experience overall.

My conversation has been entirely with the reservation manager so far, so maybe I would have more luck with the property manager.