I had this happen to me as well. I registered a domain directly with get.blog on the day that they first started accepting pre-registrations. I got an email a couple of days ago saying that I would be getting my money back, nothing about an auction. I asked for details because I too was expecting an auction. My response also came from the same guy ("Ran") who said that it wasn't available when my "application" was processed.

The twist in this case? The domain I applied for is now pointing directly towards WordPress.com. So get.blog, owned by parent company Automattic, took the domain which had been made available for the public, and gave it to WordPress.com. I wonder what ICANN will have to say?

SHADY AF.