That's not good! Surely if they have rooms left they should be booking them at the conference rate. Better than losing the booking altogether I would have thought.
Won't they make up the difference due to you being a captive of the hotel for the duration and not some tourist who eats and drinks elsewhere every day.
Sorry I can't help with a room...
I think they just booked a block which got used up. I wonder how big the block is? There are 2 hotels on either side which have ocean view rooms around $250 per/night. I will wait a few days and see if someone frees up 2 rooms...