I understand what you're saying, and the irritation you may be feeling. Truth is if there's a way to bend the rules, some people will. They found a loop hole in the system. And the executed upon it.
I think they defeated the point of the competition, but they didn't break any rules. All you can do is get your voice and your team's voice to those who make the rules and try to establish a means to evade this problem in the future. You'll be surprised what a phone call or two can accomplish.
Good luck in the future.