Regarding next steps with Redweek. What I would do. Stop working with them. They stole my money. I don't think I can recover it in court, they know it, as they made a calculated choice to screw the owners. I will post about Redweek stealing owners money in Facebook groups and everywhere so that other owners know Redweek cannot be trusted and stop listing with them. I will try go to the media as well. I lost a very significant amount with them and now it leaves me unable to pay my bills. I may well be heading towards bankruptcy because of Redweek.
While I have sympathy for your situation, it seems that you leveraged yourself very heavily on timeshare rentals when in many cases renting timeshare as a commercial operation is also a violation of many resort CC&Rs. It seems you took a lot of risk on by relying on this as a significant stream of income. I know there are probably many others on these boards in similar situations. However, IMO timeshare rentals are simply too risky to rely on in this way. I can understand timeshare rentals if you have an extra week you can't use that you need to rent out. If something drastic happens you could then probably absorb the loss. I talked with many sales reps over the years that said to buy up two or three Aruba weeks, rent them out for enough to cover the MF on all your weeks, "That is what smart owners do" is what they said. IMO, it doesn't look that smart now.
To be fair, there are a lot of companies out there that are highly leveraged that likely won't survive the current situation. Some very large companies. But that doesn't mean they shouldn't have made better business decisions over the years. I think it is far too risky to operate timeshare rentals as a commercial operation where you rely on the income to pay the bills. There is far too much change in the industry to rely on anything being able to stay the same for any given period of time. Look at all the locked accounts with Wyndham several years ago. The rules change. Perhaps running it as a side gig can be fun, but you need to have reserves to cover a 100% loss should that occur.
I am not removing culpability of Redweek in this. If people think they have a case against them, then you do have legal recourse. Of course the result of any cases is anyone's guess, but at this point it is really the only recourse.
I am sure that everything going on with Redweek will certainly shrink the size of their operation. Even if they aren't financially ruined by this, I would expect few owners to utilize their Full Service option in the future. Of course renters like the Full Service option and may look at other source to rent through. Fewer transactions through Redweek, means less money coming in, less staff, etc. If Redweek survivives, it means changes to the contracts and this type of situation in the future will always be favored toward the renter and not the owner.