Wrongful Demotion - Harm to Professional reputation

I've worked for my employer for almost 10 years. I recently was promoted from a Manager to Regional Manager. The recruiter forgot to process a Motor Vehicle check and reach out to me 2 weeks after i accepted the offer which was the day before my official start date (Although I had already started in the role a week prior, being already employed with the company)
On my first day in she called me and told me that my BG check was under review. She was panicking and explained she was going to get in trouble because of her error. On my 2nd day on the job I received a call from my Boss telling me that he had to rescind my offer because of a suspension on my driving record and our HR department said the only resolution was if I used Mass transit which he didn't see as being feasible.
This role that i was given was newly created and I had already been doing the role as a stretch assignment for over a year with no additional pay and traveled the region doing so without any problems. My offer letter also does not state any contingencies of a BG check needing to be done. I have also taken several losses. I was in the process of buying a house and now have to reapply with a higher rate now that my salary and title has changed. I sold some stock for a downpayment on a commuter car that meets the company requirement of a vehicle not being older than 5 yrs even though I already had one.
I also feel this is going to have a huge impact on my professional reputation. I had updated my linkedIn profile with my promotion, shared it with family friends and colleagues. I am well known in my Region, my promotion was announced via email. I am afraid that people will think that I lied or provided false information on my BG check which is not the case. In the system I am officially in my new role and the change they will make will be processed as a demotion.

This just happened yesterday. I can't sleep and have felt sick to my stomach of this opportunity being taken away from me and all fall out I will have to deal with. There are also other roles in the company, for example Sales Trainer, that requires just as much travel and does not require a Motor vehicle check. I am eligible to me insured and drive in my state. the only issue was that my suspension occurred in the last 3 years and seems to be a technicality. I did not mis-represent anything on my application and in fact shared my suspension with my previous supervisor who did not feel it would be an issue.