Character Flagged for Rename?

So I recently transferred this mage to Stormrage and faction transferred to Alliance. The name was already taken, and I had a character made there to reserve the name I was going to change to. I deleted the reservation character, initiated the Faction Change, and successfully renamed the mage with the name I wanted.

Upon trying to log in for the first time, I have been flagged for a rename and cannot use my name. So... what exactly happened? O_o

Edit: fixed some confusing wording.
Edit 2: Fixed more confusing wording. Trying to type when you're dead tired doesn't work.