I certainly hope the RD had more evidence than what has been put forth so far to prove this lady cheated.
I'm all for aggressive identification and harsh treatment for people who cheat - but conversely if you are going to label someone a cheater, and DQ them from a race they finished 1st in, you better be damn sure. All I see is one missed chip time and spotters that didn't see her. How reliable were the spotters. Did anyone actually see her cut? Wouldn't a spectator, or another runner who was mysteriously passed, have seen this? I hope they have witnesses.
Punishment for falsely labeling cheaters should mirror what a racer gets - a lifetime ban from directing races.