This is surely a mistake/oversight/bug/restriction with how the developer programmed it, as the physical game doesn't care about sorting out placing for the non tied leaders.
Basically all that matters to follow the rules of the physical game is that Red won the war, daselva and Epsilon3 both had the most red stones, and the first tie breaker was least losing stones, so daselva won since he only had 1.
After that, I think it tried to ignore 3rd-5th's red stones and ranked you based on amount of losing stones. However, it still ranked you above rob presumably for your more red stones, so it doesn't have consistent logic there.
If I had to program it to place everybody properly, I agree with you, it should always care about winning stones first and then go through the tie breakers. You could report it and explain that it should probably care about winning stones first when ranking everybody.