It's quiet embarrassing to see the route fairlay has taken, otherwise if someone is to be punished it has to be those players that will probably get fined if found in the wrong and not the gambler!!
Best way to resolve this is refund wagers by making bet void this way it's a win-win for everyone!!!
What makes this entire situation weird is the fact that Fairlay is a sports betting exchange and betting exchanges don't usually focus on this sort of stuff unlike regular sportsbooks like Pinnacle etc.
The punter in question was definitely shady based on the evidence that they provided, but it was never confirmed beyond a doubt thanks to Fairlay's unilateral decision. Bizarre situation overall!