I think the relevant rule that applies in this situation is that orange had inside overlap when they entered the zone and was entitled to room at the mark even if that included gybing to cross the finish line. Example, if orange had been on port approaching the finish line inside the zone, overlap was still in play, and orange would have the right to gybe or continue on port while crossing the line in a seamanlike manner.

I don't agree with the game over comment. With blue and orange on starboard at the zone, orange had the right to sail low enough to cross the line without hitting the committee, so therefore blue had the choice of trying to sail lower and through the lee of the orange sail, or gybe away and hope for clear air and better speed through the gybe.

What actually happened was that blue called for leeward boat room, pushed orange beyond the point that orange could lay the finish line, then blue gybed back to the finish line, and orange did a 270 (tack and bear away), to return to the finish (all of this took place inside the 3 boat length circle).