I mildly disagree in the sense that what constitutes a "palpable" error is just too broad of a grey area.

It would be encouraging to see FanDuel just cough up the erroneous wager (which is surely cheaper than a lawsuit) and tighten down the definition of errors in spreads to something more specific such as anything outside like 2 standard deviations within the scope of a game*

*I'm not a gambler just someone who believes the definition of error can be mathematically defined for everyone's benefit