Sorry, BlackIce, but I agree. We should not set the precedent of promoting drivers up positions when there is an incident of any kind. It's easy to imagine the problems this could cause in the future.
For example, say there was a three way battle for first place going on with fourth place far behind. On the last lap the second place car (car B) performs an illegal move which causes the first place car (car A) to crash. What should we do in this instance? From Mule's opening posts and discussion so far, I assume we would penalize car B so that it finishes behind car A. We would not promote car A back to first place. If it was a close three way battle, how is it fair to the third car (car C) to automatically give car A the victory? Car C may have overtaken both cars and won the race had there not been an incident.
The precedence for this has been set in our league, in fact. When RT and I had an incident in the last turn on the last lap at Tsukuba where RT crashed - losing one position as a result - RT was not promoted back to his position prior to the crash. Instead, I was penalized to finish behind him.
I understand that you were so far ahead of 5th place when the glitch happened that it is highly likely that you would have finished in 4th place. However, there is no guaranty that you would have finished in 4th. There is a possibility that you would have crashed again. It's not fair to those who you would be promoted ahead of.
Also, what happens if someone gets booted from the room mid-race? Are they going to finish in the position they were in before dropping out? Mule, maybe glitches and connection issues should be addressed by you in the league rules. That way there will be no debating incidents like this in the future.
From the position list I could see that you caught up to wardez and were battling it out for second place. Very cool! Nice driving too. When I get some time I'll take some photos of this race. There was lots of overtaking going on throughout the race which should make for some good photos.