Points are first redeemed into a voucher which in turn is used for the booking. In your case, since the booking failed, the voucher is still active. You can choose reuse it if you have another booking or else it'll get expired on your next billing date and points would be refunded back to your account.
Something similar happened to me with Tanishq voucher, CC said it will be returned back to the account if unused b my end of month. But if I wanted to use it, they gave a voucher code to use during checkout. Reach out to CC accordingly.