This is NOT what Fretwell is referring to. She is referring to the practice of students (aided and abetted by their guidance counselors) who apply to more than one ED or REA college when the colleges specifically note what is and isn’t allowed. Apply to an REA college AND your own flagship U for a special scholarship program? Check to see if it’s permitted. Apply to Yale, Princeton, JHU and Northwestern early (Yale and Princeton are the Hail Mary’s, JHU and Northwestern are the more “realistic” but the kid doesn’t want to “lose” the alleged early advantage at Yale and Princeton)?? No, that’s not allowed.
This is NOT what the OP is describing. Colleges will not know that a kid “intended” to apply early but changed his application- just apply RD. And colleges will emphatically NOT share, or know- that the reason for the change was financial.