These situations are dealt with on a case by case basis according to the industry’s book. A horse with, an often waivable, 10p rule 4 that had attracted >10% of stakes was never gonna have much chance of being deemed a NR.
If you don’t want to suffer in future restrict such selections to 16 runner handicaps. You’ll get your money back in identical circumstances.
The horse was at the start and nobody was willing to lay above 3/1 it placing (all in, pass the tapes or not) before the start. It was only after they had started that it was apparent the horse no longer had a chance.