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I would be surprised if the auction was restarted. The "problems" cited seem to be that the judge just wanted the families to get more money and to minimize the chance of a lawsuit from the losers messing with them. Even though this is the bid that would get the families more money, I think everyone was surprised at how low the bids were. And the more complicated nature of the bid makes it more likely that a lawsuit could hold things up. If The Onion's side can add a couple million more so that it's the highest bid outright as well as getting the families a little more, I think the judge would approve it.
Why
I think that's good - the more attention this whole thing gets the more it will attract the attention of grifters like Musk (he's already been poking his nose in where it doesn't belong)...
The families seem to realize they're getting a "fuck ton of money" regardless and are more interested in punishing Jones personally - which is perfectly understandable even if it's not the "point" of this process. I hope the onion can match at least and give these folks not only the money they deserve but the small amount of comeuppance to Jones he deserves.