One of my edits was recently rejected on Ask Different. Two people rejected it, but then the OP reviewed it as "Edit".
Is this intentional behaviour or a bug?
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Unlike what was said in the comments, this is not a case where the author overrode the rejection. In that case, the only option presented to the author would have been "approve", and the outcome of the edit would have changed to "approved".
What likely happened here, as evidenced by the fact that the "edit" and the second rejection happened at approximately the same time, was that the author was notified about the suggested edit, and clicked to review it when only one user had rejected it. Then, they opted to click the "Improve Edit" button, but before they could submit their improvement, a second user voted to reject it. (Since the review was already completed, that may be why the Community user also didn't vote to approve it.)
The system allows users to submit reviews to posts if they loaded the task while it was still reviewable, but didn't submit their review until after review had completed.
Ordinarily, this circumstance is prevented by a 3-minute "exclusivity" period on each suggested edit, wherein when someone first loads a suggested edit, no one will be shown the task in the review queue. The author likely took more than three minutes to make their improvement, so the exclusivity period ended and another user was presented the task in the queue.