TW,
I'm sorry about what happened to you.
I too don't understand why you weren't retrained following the oral bust.
I looks/sounds like a raw deal.
Many pilots have had the 121 door slam in their face only to open up greater aviation opportunities in the 91 world.
Other aspiring pilots/captains:
On your hotel overnights, read your company operations manual, read the op specs and practice your memory items and limitations. Occasionally, re-read your ATP written prep material. It may not be as fun as chasing the F/As around, but it will save your tail during orals and make you a better* pilot.
If an examiner asks a bullcrap question, call them on it.
If they ask a question that's not in your instant recall, tell them where you would look that info up.
* Subjective, for what it's worth...