I don't really agree with the Order-Zoner rephack, as somehow it feels as if spheres had been mixed that should not be mixed: sanction and irp consequences. The mixing makes the irp development somehow feel stale and weird.
I think it would have been a better chance to give warnings to the involved factions to remain inside the given scope of roleplay and lore or return to it, combined with an announcement what would happen if they did not react to the advice.
Just retconning it now because of "detrimental effects" is not an option.
Now that the situation is there, the players should sit together and figure out a solution with which both sides can live. In this case, it is fairly easy to see how that could work, as there doesn't seem to be any euphoria about the FR5 on either side of the fence.
Perhaps... as heretic as it sounds... it could be a solution for once not to regard anything that is not portrayed as "super-strong!" as breakfast for the factions that depict themselves as "stronger than you", but as an important part of a fragile system of cooperation that has been in existence for hundreds of years for a reason. Basing roleplay on that general concept might lead to a way to co-exist without clashing all the time on various levels.