I recall hearing about this from instructors and indoc instructors right after it happened...
Things like this are normally not just made up. This case is a little bit of crying that went a long way in the wrong direction for the folks in question.
The five in question should not make it personal. They'll get off probation and everyone at ASA will know they can fly and this will fade. You'll upgrade, get hired by the airline of your dreams and when they give you the plane you don't want, you'll be happy to get it.