The OP was missing several key pieces of relevant information (no fault of his own). Over the course of the last few months there have been several attempts at collaboration that would have shared raid IDs between Skyfang and LSI. Some of their alts were present in one of our raids a while back and more recently they asked to borrow a shadow priest so they would be able to kill madness on heroic. However, in the end we were given information willingly by a disgruntled LSI raider. This helped us attain a 7/8 heroic cleared instance. This LSI member even knew the potential consequences. He just did not believe that we would be successful. We then proceeded to throw ourselves at it while LSI elongated the distance to realm first another week by deciding to further gear up and work on the meta.blah blah blah u used an exploit to get heroic First. thats all i heard. its Spine then DW not gain lockout to skip Spine cuz its to hard for u guys.
Furthermore, it is very important for people to realize the following requirements. The requirement for realm first is to simply defeat madness on heroic FIRST. The requirement to spawn madness on heroic is to simply be in an INSTANCE that has had the previous seven bosses defeated on heroic. We easily met these requirements and in no way stopped or hindered LSI's raid progress. Nothing was stolen. The way the raid locks now work assures that and even fosters scenarios like this. In a real competitive raiding scenario something like this would have never happened.