Domain name registration tomfoolery....

While following Twitter yesterday I noticed that the ".me" domain name had gone on sale. It opened up some interesting opportunities so I went to a link provided on Twitter and attempted to register the domain "call.me".
To my delight the whois info on the registrars site indicated that it was still available. I proceeded to enter my details, payment info etc. and was asked to confirm the order details. Everything went through without a hitch and I was given an order confirmation. You can imagine how delighted I was.
As the MD of the registrar was on twitter I sent him a quick DM to let him know that I managed to register this domain.
To my amazement I received a very short reply telling me that this was actually a "premium domain", that I could not register it and that my payment would be refunded!
Now, those with legal knowledge would know that there are such things as offer, acceptance and consideration...
At no point during the registration process was there any mention of it being a premium domain. The payment was processed and the order was confirmed. That makes a binding contract/agreement as far as the law is concerned.
Now, the MD of this company is quite well know as a reasonable chap, his company has a good reputation and I do not want to be a complete arsehole if this mix-up is caused by a genuine mistake. However there are better ways that this could have been handled by them. I still have to receive "official" confirmation that my order has been cancelled. No further explanation or even a request if I was willing to purchase it at premium domain rates has been sent.
What I did notice however is that the domain has now been registered to a company with some eastern european address.
Am I being taken for a ride here?
The least that the registrar could have done is apologise for their mistake. If they ahd done so I would probably have accepted it and forgotten about the whole issue.
Their arrogance and dismissive approach to this is just plain old band mannered and shows a significant amount of arrogance...