To reiterate my point, I am not saying stake did anything wrong at all, I am just asking for anyone this happens in future isn't the better option to cancel such bets?
Sorry about your brutal loss. The way I view this situation is similar to how some sportsbook would settle an incomplete/retired tennis match where some would void all the bets while the others would continue to settle them as winners/losers.
It's hard to say that it's better for them to void because there might be other bettors willing to take the risk as some teams can still win even if they're down a man but then again they haven't updated their rules for quite a while since there's no section for esports.