Elements had same amount of wins and losses as you but had 14 points where as you had 13. for that reason they went through. however GVT had the same amount of points (14) so a FT3 was done to determine the top of the bracket. GVT won 2-0 so it got added onto the GVT vs elements fight so that the brackets would update accordingly
to respond to both cookie and you. Im pretty sure Tiebreakers are made on challonge for these situations. So a bo3 for 1stplace is quite unheard of. Big sad that my boy snowwi couldnt perform tonight
Not sure how the challlonge was formatted judging from the screenshot.
Should just be done based on wins, then the first tie break being points then finally matches played as the final tiebreak.