1) This is no bug. We could indeed implement a check before setrank if the player is reserved or not. But it just makes sense to remove the permissions from a player when a non-reserved player is being reserved.

2) This mechanism doesn't remove anyone's Owner status and sets the player to leader only.

3) What I guess is that after EDS has reserved his name, you have given him Owner permissions. The Leader (Owner) rank can only be edited/removed by another player with that rank. So I guess EDS just set you to Leader. As stated above, Leaders can not set them selves to Leader (Owner).

4) What I suggest is you contact EDS and ask him to set your player to Leader (Owner).

/JoNny