Earlier quoted context omitted.
This is a no-brainer. Surely the risk of putting off skilled people from your bug bounty program due to the press from this could cost you a lot more than $500.
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If the rules are getting in the way of what the organisation is actually trying to use those rules for, then to be a stickler for rules is nuts when the same organisation wrote the rules in the first place and can change them at will.
edit - and if it is neccessary due to corporate legal waffle to always be a stickler for rules, then make a rule that details the protocol for exceptions.