Reallocation in 1. used new home resort points you just acquired to replace home resort points you previously used.
Reallocation in 2. is actually not within the rules. They replaced points used within the home resort priority window with points from another resort, actually letting you go around booking rules. I'm glad for you, bu that was a mistake on the CM part and not something I would count on happening again. Unless there was availability for another 1BR at BWV for the same night, in that case it wasn't really a reallocation but a new booking and then a cancellation.