Faction Transfer / Account Compromise Issue

This will require a short time line of events so that you properly understand my problem.

Thursday Afternoon:
I faction change my warlock (Inahk) from Alliance to Horde on Mannoroth. I get an e-mail saying my faction change is "PENDING". The faction transfer goes through fine, I log on my warlock and run a couple of heroic dungeons. I log off for a while. I never got a faction transfer complete e-mail.

Thursday 10:29 PM EST:
I get an e-mail from Blizzard account administration telling me I have been banned for 72 hours for economy exploitation. I immediately knew this meant my account had been hacked. I tried to log in but my password was changed. I used the secret question to recover my password.

I send an e-mail to Blizzard asking them to remove the 72 hour ban and explaining the situation. I wait for a response. I also order an authenticator. :p

Friday 6:08 PM EST:
I get an e-mail from Blizzard telling me my faction transfer has failed due to either my credit card being declined or they suspected that I was not the one who initiated it. But yet, my warlock was already horde, I faction changed it myself, and I had already been playing it BEFORE I was hacked.

Sunday 10:29 PM EST
My 72 hour suspension wears off, without actually being lifted by Blizzard during its duration.
I log in, check my druid and see that all its gear and gold is still there, then go to log into to my warlock and I get the message "You cannot log in until the character update process you recently initiated is complete."

My warlock is horde, as I wanted it to be, yet the game thinks a faction transfer is still pending or something? Can my character be fixed somehow?

Thanks in advance.