Well folks...it might make you mad to hear the truth but here it is....I just got off the phone with the folks at sears.com and they are well aware of what's up...Since it's been quite a while since the deal died, calling wasn't going to hurt anything at this point.
If your transaction already went through and you used your gift card, it appears they are going to allow you to win on this deal.
If your transaction has not been processed, they are going to offer you the chance to cancel the order or pay the full face value.
If your transaction has processed but you haven't used the gift card, they are going to cancel/put your gift card on hold and offer you the chance to pay the face value or cancel the transaction.
What made this happen?
The website auto discounting system starting applying the 50% off to all things that had holiday related key words. The software confused gift cards with Christmas cards...LED lights with LED TV's and other such deals.
Needless to say, Sears.com is actively working to try to reverse these ASAP….I did get the impression though that they are having to work their way through the list one at a time and contact each buyer, so it’s going to take a while to sort it out.