If you were charged for 2 nights you should get credits for 2 nights.
Perhaps approach it from a different angle and ask for 1 night to be refunded if they are only crediting you for 1 night stay OR if they insist on continuing to charge you for both nights, then rationally request a credit for both nights.
Is there a regional manager or GM you can get in touch with? Asking for their contact may yield a solution locally quite fast. 😉
Could you let us know the outcome of any further escalation?
Thanks for sharing your experience!