First of all, while dirty. underhanded, and generally a scum sucking way to take advantage of a coding mistake, GE is in control of CSA assets, the admin have made their decision, and there is no point continuing to complain about it as much as I would like to.
However, due the descrepancy between browsers presentation of the spying rules, I find it unfair that all people and factions under CSA get totally and completely shafted.
First part of my solution is to let GE keep everything they have earned, no matter how underhanded the way they earned it was. Lets face it, it did take an impressive amount of planning to pull off, and they may have (although unlikely) done it under the impression that the CSA leadership knew something like this was possible.
Second part is to waive the faction creation fee for a single faction for the displaced CSA members who do not wish to continue playing under empire control. Do not allocate any additional assets, simply allow the creation of a new faction for free, and let the members bring what assets they have to the faction on their own.
Considering the obvious confusion over the issue, and the fact that people were indeed looking at differing sets of rules, I think this is a more than fair compromise. The empire keeps its gains, and the CSA loyalists get a flag they can rally under.