What happened is this:
Summerdale invaded the region, which belonged to Libero. Orris was at that time the lord. He was captured by Summerdale, losing the lordship. A referendum to elect a new lord was automatically generated. Orris escaped from prison, and entered the election. Summerdale completed the TO. One day later, there was a message that they had TOed it from themselves. The election was completed, and Orris elected (and apparently made a member of Summerdale), and installed as lord. Orris changed allegiance of the region.
My views as ruler of Libero: I think this is, at the least, somewhat suspect, and I honestly do not really approve . . . however, the real bug is not that he was able to change the allegiance of the region, but that the election successfully completed. When the election finished, I didn't actually think it made him lord, regardless of what it said . . . I was rather surprised when I saw the message that he had changed the region's allegiance.
In my opinion, it's less than honorable, but since he was lord, entirely legal for him to do . . . the bug was that he became lord in the first place, but he didn't try to exploit a bug to cause that. A bug may have created the situation of him being lord, but my understanding is that this doesn't make him any less lord (which I disagree with, personally, but I'm not a dev, so my opinion matters little).