First, congratulations to your daughter on recruitment! I hope she is very happy with her new sisters!
Yes, you are misunderstanding the process, and it stems from the use of the word "Cut". The PNMs aren't really cutting chapters, they are ranking them. It's too bad it's not explained better, but I often read here about girls who think they "cut" a chapter because they ranked them last, and are then offended when the chapter issues an invitation to the next round.
What happened was that your daughter was not invited back by one of her higher ranked chapters. Panhellenic (via their computer program) filled her party schedule with one of her lower ranked groups. They do this because it benefits the pnms and the chapters to have full dance cards, and many minds are changed (on both sides) when there are return visits and second or third looks.
It's too bad your daughter was tramatized by having to re-visit a chapter that put her in tears, but those were the two chapters that wanted her to attend their pref parties.
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