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This is the first step to failing twice.
FUAC might get another chance to bid, but so will the Onion. And the Onion will outbid FUAC, because they have up to $965 million available if necessary.
The Onion is buying it to kill it. They won't want to recklessly spend a good chunk of their valued worth just to cut off the head of a hydra. Even if it's better for the family's true intentions of silencing Jones.
The Sandy Hook families have agreed to reduce the amount they are owed in the settlement in order to make up the difference between The Onion and the highest bidder. This allows other creditors to end up getting paid more despite The Onion's bid being less because the families are taking less of a cut.
So it's not The Onion paying more money, it's the families taking less, and the families aren't doing this for the money.
Nobody wants to spend much money on it. That's why the Onion will win the auction, they can use $965 million of Alex Jones's own debt, courtesy the Sandy Hook families, to pay for it.
Not kill it, but invert the messages it sends.