They cancelled on 11/28 for a 12/29 arrival, meeting the 31+ day requirement for regular cancellations. The points go back into their account to use for another reservation or to bank (if within the deadlines).
If cancelled 30 days or less, points go into a holding account. Holding account points can only be used for a reservation 60 days or less before arrival and will expire at the end of the current use year.