Sounds bad researcher and I am sorry to see that it happened. So when it first came out active at 850k you made the inquiry and were told at that time that there was an accepted offer already? Well that kind of sucks.
So next time you or others in the same position get stonewalled I would advise as follows… Again, get something into the agent in writing. Also when you called and were stonewalled by the agent, why didn’t you go to the broker? That would be the next logical step. Remember listings belong to brokers and not agents. Obviously per your post you have been looking for a long time and this was what you considered a great deal. However the manner in which you lost out on it sucks. Conversely the methodology you took to try to procure it was not done in such a manner that it would discourage this type of fraudulent behavior. It is one thing to lose out on a home in a “fair” bidding war but another to lose out in this manner. Taking more concrete steps will at least prevent that in the future.
I understand your decision to throw in the towel and work directly with the listing agent but that may not work. I know everyone thinks more agents participate in fraud like this then less, but it is my experience that it is the other way around. Anyways it does suck and even with no documentation, it would not be a bad thing to go to the brokerage and sit down with the broker and tell him/her what went down. You also can still file a complaint to the dre.